Virtual currencies in relation to VAT Act

Trading with virtual currencies is considered a financial transaction, and as such is exempt from value added tax in the EU, based on the judgement of the European Court of Justice. Notwithstanding the above statement, VAT may be applicable to virtual currencies if they are used to pay for purchased goods and services, since such transactions are subject to VAT as if the euro was used as the transaction currency.

Source: WTS

---

---