BRUSSELS – Cryptocurrencies have taken an extra step towards wider acceptance in the EU, as a new court ruling places the new currencies on par with standard fiat currency.
In a statement made on October 22nd the European Court of Justice announced that a new ruling has been made that the purchase of Bitcoin and other cryptocurrencies should be exempt from VAT.
The Court ruled that when consumer in EU purchase or sell any cryptocurrencies they will not be subject to VAT, as though they were buying a good, as these new currencies are now to be treated as a traditional fiat currency.
In effect the new ruling means that cryptocurrencies are now regarded as standard currency like notes or coins.
The new ruling does not exclude any profits made from the exchange of cryptocurrencies from the levying of income taxes, or any other taxes applicable to the particular transaction or business.
The question of the taxation of cryptocurrencies has been up in the air for several years, after the Swedish tax authorities turned to the EU to a ruling on the issue.