ECJ issues ruling in Hedqvist: open questions

bitcoin_abstractA number of interesting questions still remains unanswered. The Hedqvist case concerns only the exchange of bitcoin against “traditional currencies”.

For instance, the payment for goods or services with bitcoin is not covered by the case.

Therefore, it remains unclear how a supplier accepting bitcoin as a means of payment should determine the VAT liability (e.g. which exchange rate to use).

Also, the court indicates that non-traditional currency should not have any “other purpose than to be a means of payment”. In practice, it might not always be easy to make that distinction. Read more: ECJ issues ruling in Hedqvist: exchange service for bitcoin is VAT exempt | Oscar Smeets | LinkedIn

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