Breaking News: BITCOIN IS VAT EXEMPT C-264/14

In today’s judgment, the Court holds that transactionsto exchange traditional currencies for units ofthe ‘bitcoin’ virtual currency (and vice versa) constitute the supply of services for considerationwithin the meaning of the directive, since they consist of the exchange of different means ofpayment and there is a direct link between the service provided by Mr Hedqvist and the consideration received by him, namely the margin created by the difference between, on the one
hand, the price at which he purchases currencies and, on the other hand, the price at which hesells them to his clients.
The Court also holds thatthose transactions are exempt from VAT under the provisionconcerning transactions relating to ‘currency, bank notes and coins used as legal tender’.


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