In a move that brings the virtual currency more in line with traditional cash, the EU’s top court yesterday ruled that transactions in bitcoin should be exempt from value added tax.
The case was fought between Swede David Hedqvist, who developed a service for exchanging traditional currency for bitcoin and vice versa, and Skatteverket, the Swedish Tax Agency.
According to the court, bitcoin could not be characterised as “tangible property”, and the transactions at issue do not fall within the concept of the “supply of good”, so are not taxable.
“The supply of services such as those at issue in the main proceedings, which consist of the exchange of traditional currencies for units of the ‘bitcoin’ virtual currency and vice versa… are transactions exempt from VAT,” the judgment said.
The ruling only applies to exchange of bitcoin for traditional currency, rather than purchases with the virtual currency.
The court agreed with Hedqvist who argued that in the case of exchange transactions, the “difficulties connected with determining the taxable amount and the amount of VAT deductible may be the same,” and so found that excluding bitcoin transactions from tax exemptions would “deprive it of part of its effect”.
Fresh off securing $63m in funding and appointing a new CFO, the Stockholm-based provider of contactless and mobile card readers has partnered with China's payments giant, UnionPay, on increasing card acceptance for European SMEs.
Coinable became the latest cryptocurrency exchange company to receive a licence that allows it to operate in the state of New York.
Wirecard has partnered with Apple Pay in France to launch boon, its mobile payment application.
It’s no secret that customers increasingly prefer to use mobile banking apps to manage their cash ‘on-the-go’ over online banking.