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EU's Top Court Rules That Bitcoin Exchange Is Tax-Free

  • Top EU court says exchange of bitcoin should be VAT-free
  • Sweden sought advice on whether exemptions should apply
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Photographer: George Frey/Bloomberg
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Bitcoin got a boost at the European Union’s top court after judges said exchanging virtual currencies should be exempt from value-added tax in the same way as traditional cash.

In a ruling that puts Bitcoin on a more equal footing with mainstream money, the EU Court of Justice sided with Swede David Hedqvist who set up a service for the exchange of mainstream money for bitcoin and vice versa. VAT, a type of sales tax, shouldn’t be charged because the business involves “the exchange of different means of payment,” the judges said.