The European Court of bitcoin is a kind of non commodity currency
Beijing time on October 23rd morning news, on Thursday, the virtual currency bitcoin (bitcoin) towards becoming a legitimate currency in the direction of a further step, the reason is based on the European Court of Justice (CourtofJustice) decision, bitcoin must be regarded as a kind of tax use currency to be treated, not to be considered as a commodity.
The European Court ruled that a fee to the euro or SEK traditional currency into bitcoin bitcoin exchange is exempt from value-added tax, the reason is in accordance with the relevant provisions of the EU, “was used as legal currency, bank notes and coins” without value-added tax.
Europe is one of the largest bitcoin trading area, so for the virtual currency, the ruling European Court represents a great support, eliminating the potential threat in Europe or the use of bitcoin purchase transaction may be taxed.
At the same time, the decision Thursday also learned a debate within Europe, that is how to treat this kind of virtual currency. The tax authorities have previously made clear bitcoin is a monetary stance, but Sweden and Germany and other countries have always believed that should be treated to bitcoin as a commodity, which means bitcoin conversion will need to accept the sales tax constraint.
A top lawyer of the European Court in July had suggested that the court made the above decision, so the decision Thursday is not surprising, but the bitcoin business or for long out of breath. Previously, these companies have been strongly advocated, if the charge VAT bitcoin transactions, it will bring competitive advantage outside Europe bitcoin business, the reason is that the latter does not face a similar threat.
The decision is “to ensure the bitcoin future first step to become a” alternative currencies, tax compliance, Avalara vice president of Richard Asquith (RichardAsquith) said.
From financial Tencent: