The European Court of Justice in Luxembourg ruled on Thursday that the conversion of conventional currencies in Bitcoins remains tax-free.
The Internet-currency is to be treated as any other way of payment ,Bitcoin is a digital currency is in circulation on internet since 2009 ,Bitcoins are generated on the computers of users, but can be purchased online with established currencies such as dollars or euros.
Background of the decision is a case from Sweden. A man wanted there to offer the conversion of conventional currencies in Bitcoins and vice versa. That’s why he wanted to know from the Commission competent in Sweden, whether VAT is payable on the purchase and sale.
The Commission said yes because use of Bitcoins is legal and used in sales,The tax authorities thought otherwise and went before the Supreme Administrative Court and asked the top European Court of Justice in Luxembourg to help in the interpretation of EU law.#bitcoin #cyber war #European #infosec #internet #Justice #Lexemburg #Sweden #Vat