Switzerland: No VAT on Bitcoins

switzerlandThe Swiss Federal Tax Administration (FTA) has good news for the Bitcoin community: Due to the fact that goods are bought with Bitcoin as a currency, Switzerland sees no reason to be backed digital currency to VAT. The announcement is in response to a formal request on the part of various Bitcoin companies from Switzerland.

With the decision, the tax authority has made it clear that Bitcoin, as well as the Swiss Franc, is a currency and not a financial asset. Thus, the transfer of Bitcoin is no transfer of a good or service and therefore exempt from VAT.

The European Union has so far struggled to accept the digital currency as a real currency. The European Court will make oral loud Bitcoin.se June 17, comments on the taxation of Bitcoin.

Mathieu Buffenoir, Swiss Bitcoin Association, said:

“We hope the decision from Switzerland to the rest of Europe serves as an inspiration.”

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