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Fri, 30 Oct 2015 Feature Article

Bitcoin Exchanges Not To Pay VAT, Says The European Union Court Of Justice                                               

Bitcoin Exchanges Not To Pay VAT, Says The European Union Court Of Justice

The highest court of the European Union, the EUCJ, last Thursday, 22nd October, 2025, ruled that bitcoin exchanges do not have to levy value added tax (VTA) on the margins they make when exchanging bitcoins for fiat money.

A bitcoin exchange gives clients the platform to exchange various Cryptocurrecies and also exchange particular Cryptocurrecies into real cash. So for example, one can exchange bitcoin into litecoin, namecoin, dogecoin or virtacoin. One can also collect cash in exchange for bitcoin or other Cryptocurrecies.

A would be bitcoin exchange operator in Sweden, David Hedquist, together with the Swedish Tax Authority asked the EUCJ whether Hedquist must charge his clients VAT when exchanging bitcoin to kroner.

The highest court ruled that bitcoin exchanges in Europe should not pay VAT on the margins they make or the commission they charge when swapping bitcoin for fiat currencies. It has not stated in the ruling whether this applies to other cry to currencies like litecoin and virtacoin.

Whether the European Court ruling would become a standard to be followed by other continents is yet to be seen

Divine Sewornu Dzokoto
Divine Sewornu Dzokoto, © 2015

This Author has published 23 articles on modernghana.comColumn: Divine Sewornu Dzokoto

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