No VAT Deduction for Crypto Transactions When All Clients Are EU Residents, Court Rules

• A crypto platform cannot deduct input VAT for services to non-EU parties if all its customers are within the EU.
• The company operated a platform for buying and selling cryptocurrencies and also traded on foreign exchanges like Bittrex (USA).
• The court ruled the company is only a service recipient from Bittrex, not a service provider to Bittrex or its users.
• Since all customers are EU-based, there is no right to input VAT deduction for non-EU services.
• The additional VAT assessments for 2017 and 2018 remain valid.

Source: taxence.nl

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.

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