Spanish Bitcoin Community Celebrate Bitcoin’s VAT Exemption

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Spain’s bitcoin community is celebrating following confirmation that the cryptocurrency is exempt from Value Added Tax (VAT) in the country.

Bitcoin had always been exempt from VAT, but a spokesperson from Spain’s tax office, Ministerio de Hacienda, told CoinDesk the decision had been clarified following a question from a bitcoin aficionado.

The confirmation is based on the interpretation of EU VAT Directive 2006/112/CE, which recognises bitcoin as “financial service”.

Both bitcoin startups and legal experts in Spain are praising the administration’s decision, which provides clarity in an otherwise uncertain regulatory climate.

Pablo Fernández Burgueño, an expert in e-commerce law and the co-founder of Abanlex, said the exemption seemed “logical”. He told CoinDesk:

“Bitcoin is mostly being used as a speculative tool, only a minority are using it as a payment form, because of this the tax office would find it impossible to levy VAT for every bitcoin transaction.”

Daniel Diez, business development manager at bitcoin-to-cash service Bit2Me, added that bitcoin startups would now be able to plan their financial strategy more effectively. He said:

“It is great news for [bitcoin] companies because previously, the legal uncertainty around the subject was very high and it could lead

Read more ... source: CoinDesk