The Message Is The Medium

EU Court Decides Bitcoin Is A “Real” Currency Among Others

“Bitcoin and other virtual currencies can be exchanged tax free, the European Union’s top court said in a ruling that puts them on a more equal footing with traditional cash.” (Bloomberg) – URL

At last the ECJ ruled in favor of the future, after a Swedish Bitcoin-exchange asked for clarifications years ago. Effectively this decision officially recognizes Bitcoin as a currency among others. Many of the owners of Bitcoin-related businesses in Europe will celebrate tonight. BI covers it here, CNBC here.

What the ruling means is that businesses dealing with exchanging bitcoins to other currencies do not need to add VAT to each transaction (exchange), just as when exchanging between other currencies. If they had ruled otherwise companies within the EU would’ve had to treat bitcoins as commodities, adding VAT to each “product” (each fraction of a bitcoin “sold” (exchanged) for another currency), just as sellers of groceries need to add VAT to the price of each sold carton of milk or eggs. In practice this gives Bitcoin a “sign of approval” from the top dog of the EU justice system.

Or for short; This is gentlemen.