Exchanges and remuneration of VAT-free cryptocurrencies – The Economic Journal

The exchange of cryptocurrencies for real currencies and the remuneration received for the production of virtual currencies are exempt from VAT (Value Added Tax), reveals the "Business Journal" in this Tuesday's issue.

The clarification was given by the Tax and Customs Authority to a company that wants to do digital coin mining and then published online, citing a ruling by the European Court of Justice (ECJ) on bitcoins.

“Considering the ruling by the CJEU (…) the exchange of cryptocurrency for 'real' currency constitutes a supply of services for consideration, exempt from VAT”, can be read in the tax authorities' binding information. Finance also adds that remuneration is based in the same direction, according to the economics newspaper.

The tax authorities clarify the fiscal framework of this activity after having previously stated that income from cryptocurrencies did not pay IRS (Personal Income Tax).

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