Transactions with crypto-assets can have tax implications not only in terms of income taxes but also in terms of value added tax. Although these transactions are carried out by an individual, he/she may have obligation to register for VAT.
The ruling of the European Court of Justice in case C‑264/14 David Hedqvist, which resulted in virtual currencies being comparable to fiat currencies from VAT point of view, allows us to draw a conclusion that means good news for virtual currencies trading.
There are several types of transactions with crypto-assets (incl. virtual currencies) and each type of transaction is being assessed for VAT purposes differently. According to the prevailing principles in EU states, the VAT assessment of the transaction is being presented in the article.
Contribution by Vladimíra Mačuhová, Tax Advisor @ EMINEO PARTNERS