Finland bitcoin services are exempt from VAT
Today, the Finland Central Committee (CBT) of the tax department pointed out that the exchange in the provision of banking services”. By the Exchange Commission, therefore, in accordance with the EU VAT directive, exempt from vat.
The EU directive, such as VAT directive is specified by the member states to achieve some goal. The members have given considerable discretion, decide how you will achieve these goals (see article 288th of the Treaty for the European Union). In contrast to the “EU regulations”, will also specify the goals and methods, Member States must implement them.
The EU VAT directive applies to the EU within the scope of the sale of goods and services. The purpose is to coordinate between the EU VAT law, specify all EU members to the VAT rate must be within a certain range, but by the member states to decide the scope of tax rate decreased. The VAT directive 135th exemptions of all financial services”.
Therefore, the Finland Central Committee concluded that the exchange is to provide financial services, therefore, exempt from vat. The status of Finland can compare and contrast with other EU countries.
Other European bitcoin value-added tax decision
The Belgian Federal Public Financial Services (FPS) announced that the domestic digital currency transaction tax exemption. The premise of FPS is that bitcoin is not the legal means of payment, therefore cannot pay vat. But bitcoin, they may modify the rule of the future.
EU VAT directive 135th, said the financial services be exempted in the EU region. Therefore, in any given member states, bitcoin transactions are to be regarded as “financial services” is a key problem. If the certification of the relevant departments, will be exempt from vat. If it is regarded as “the provision of goods or services, then it will be subject to vat.
Britain also stressed that digital currency transactions exempt from vat. This is not the first time to the UK recently bitcoin move. Earlier this year, finance minister Osborne said he is eager to become the hub of British coins. More importantly, the HMRC declared exempt from VAT, will not be used to provide the goods and service businesses, in exchange for bitcoin transactions. This tax policy is only applicable to bitcoin transaction fees.
Sweden recently asked the Supreme Court of the European Union “preliminary ruling, this can impact on all European Member States have extensive and profound. In the preliminary ruling, the Supreme Court of the European Union on behalf of the European Union legal authority and the right of final interpretation. However, the final decision problem for the court (as determined by the Swedish Supreme Court in this case). Therefore, the law can be interpreted to support the plaintiff, but the plaintiff can be considered lost to the court. The purpose of this program is to ensure that the EU law applies to EU Member States, to maintain consistency.
Sweden has the leading bitcoin economy”. Senator David Hedqvist has asked the Supreme Court of the European Union’s preliminary ruling. Whether all the Bitcoin.se worked with the Swedish tax bureau about Sattkevert services provided by the enterprise shall be levied on the issue of value added tax. He is seeking clarification of the virtual currency exchange of traditional currency (and vice versa) is a transaction service, if it is in accordance with the regulations, the 135th such service is free. If the court finds that it is a financial service for all EU members, is an authoritative ruling in the EU all similar service exchanges will be exempt from vat.
Other members have taken a more conservative stance. Poland is now charged 23% bitcoin transaction tax. The tax authorities in charge of the reasons is that bitcoin mining sales is a service. Taking into account the value-added tax for sales of goods and services, the bitcoin mining need to pay vat. Estonia has adopted a direct position against Finland, the authorities do not agree to pay the alternative tools as duty-free financial services.