A great and insightful view into Bitcoin & VAT by Stefano Capaccioli
The Swedish Supreme Administrative Court in the Case No. 7101-13 resolved to submit a preliminary ruling under Article 267 TFEU on the interpretation of Article 135.1 of the Directive 2006/112/EC on VAT taxation on bitcoin.
The question raised in a case in which advance ruling sought by a person who intends to carry on business through a switching operation with the virtual currency bitcoin to “fiat” currency.
The Supreme Administrative Court raised the following questions:
1. Does the exchange of virtual currency with “fiat” currency constitute a supply of service under VAT Directive?
2. Should the answer to the above be yes, are the exchange transactions of bitcoins exempt from VAT under Article 135.1 of VAT Directive?
The Court of Justice of the European Union received the preliminary ruling on 02.06.2014 and assigned to it the number C-264/14.
In light of that, we deem necessary to briefly summarize the history…
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