Bitcoin is VAT free in Europe, top court confirms
The Court of Justice of the European Union has ruled that Bitcoin is a currency and that trading in it is exempt of VAT.
Dutch Bitcoin exchange Litebit.eu had to pay 21% VAT over their margins, but can now ask for a tax refund, according to CEO Rogier Fischer in Business Insider UK.
The ruling (PDF to press release) follows a year in which banks worldwide have been contemplating the use of blockchain, the electronic public ledger used for all Bitcoin transactions.
In 2013 Dutch Finance Minister Jeroen Dijsselbloem ruled that Bitcoin was not electronic money. Arnoud Engelfriet wrote last week that the European ruling brings Bitcoin “a step closer to being money”.
Dutch people still need to pay capital tax over the Bitcoin they own, because capital tax is calculated over the value of all possessions, not just over that of money.