No right to deduct input VAT related to mining and exchange of cryptocurrencies exists, as
- The mining of cryptocurrencies (e.g. bitcoins) has gambling character and qualifies as a tax-exempt activity pursuant to Sec 6 para 1 no 9 lit d sublit aa Austrian VAT Act.
- The exchange of various cryptocurrencies for other cryptocurrencies is to be regarded as a tax-exempt service under Sec 6 para 1 no 8 lit b Austrian VAT Act, analogously to the ECJ case Hedqvist (Federal Tax Court 19.11.2019, RV/5100226/2021).
Source Leitner
See also ECJ C-264/14 (Hedqvist) – Buying and selling Bitcoin is exempt from VAT
