VAT Exemption for Closed-Loop Payment Tokens Confirmed by National Tax Authority

The sale of digital tokens used solely as a means of payment within a closed ecosystem is exempt from VAT under Article 43(1)(7) of the VAT Act.
The National Tax Information Office confirmed this exemption in an individual interpretation for a client issuing such tokens.
These tokens are pegged to the British pound, can be purchased with fiat or cryptocurrencies, and are only usable within a specific network of merchant partners.
The tokens are not tradable on open exchanges and do not function as vouchers or prepayments for specific goods or services.
The exchange of fiat or cryptocurrencies for these tokens is considered a service-for-service transaction, qualifying for VAT exemption due to its payment function.

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.