- Cryptocurrencies are increasingly used in business transactions, but tax authorities struggle to understand their application.
- A ruling by the National Revenue Information Service highlighted differences between the tech sector and tax authorities.
- An IT company received payment in cryptocurrencies and believed the exchange was not subject to VAT.
- The company argued for a VAT exemption, claiming the exchange was an ancillary transaction.
- The tax authority disagreed, stating the exchange is a taxable service, exempt from VAT but not ancillary.
- The authority linked the exchange to the company’s core business, not considering it incidental.
- The CJEU ruled that cryptocurrency exchanges are services, not goods, and are subject to VAT if performed for consideration.
- A VAT exemption may apply to financial services involving virtual currency exchanges.
Source: mddp.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
