New EU court case approves bitcoins
The European Court of Justice has recently decided that the exchange of the virtual currency bitcoin is exempt from VAT. Thereby, an important step may have been taken to approve bitcoins as real means of payment in line with other kinds of currencies.
Until now it has been uncertain in Denmark how purchase and sale of bitcoins should be treated from a VAT point of view but since the court case is applicable in Denmark as well, it is now certain that such transactions are exempt from VAT. Companies having paid VAT on such sales can ask the tax authorities for a refund of the VAT. In Denmark companies doing business with purchase and sale of bitcoins must instead pay payroll tax.
With the judgement bitcoins have - at least from a VAT point of view - been accepted as real means of payment. Whether that will have an impact on the taxable treatment of the purchase and sale of bitcoins and on the regulation for financial actors has not been decided yet.