Bitcoin users do not have to pay value added tax (VAT) on bitcoin in Switzerland. The Swiss Tax Administration (ESTV) has announced there will be no VAT on bitcoin transactions, according to Bitcoin Association Switzerland.
The news brings hope not only to bitcoin users in Switzerland, but worldwide. Switzerland has a global reputation for financial security. Bitcoin supporters want governments to view bitcoin as a method of payment, not as a delivery of goods or a service subject to a VAT. Bitcoin supporters have noted that it will be difficult for bitcoin to become an accepted currency if bitcoin transactions are subject to VAT.
“This is excellent news for bitcoin in Switzerland as it provides the legal certainty we need to professionally operate our business,” said Niklas Nikolajsen, CEO of Bitcoin Suisse AG, a bitcoin brokerage.
Swiss bitcoin organizations called for clarification
The ESTV made its