Switzerland Reportedly Eliminates VAT For Bitcoin Transactions

The news was delivered following a formal inquiry to the Swiss Federal Tax Administration (FTA) by three members of Bitcoin Association Switzerland, submitted in Feb 2014. FTA’s answer clarified that bitcoin is not seen as a good or service, and is not subject to VAT.

– Luzius Meisser, Bitcoin Association Switzerland President

This is great news for Swiss bitcoiners, who actively trade the digital currency, and bitcoin accepting merchants, as they won’t have to pay tax on the service or good and the transaction itself.

– Niklas Nikolajsen, Bitcoin Suisse AG CEO

VAT and Bitcoin in Europe

Switzerland joins several other European countries who have clarified their standing on VAT and bitcoin transactions.  The United Kingdom, Germany, France, Belgium, Finland, and most recently, Spain have all classified digital currency transactions as exempt from VAT. A decision by the European Union (EU) could clarify bitcoins VAT standing for all European countries, but  clarification has yet to be provided.

– Bernhard Kaufmann, Moving Media GmbH General Manager

It is currently unclear what legislation was cited by the Swiss tax authorities, which are not in the EU jurisdiction. Other European countries who have clarified the matter, and classify digital currencies as VAT exempt, cited EU legislation. “We can conclude from the Granton

Originally appeared at: http://bravenewcoin.com/news/switzerland-reportedly-eliminates-vat-for-bitcoin-transactions/