European Court of Justice proposes Bitcoin VAT exemption

Citing existing exemptions for currency and money transactions in Europe’s VAT Directive, the Attorney General urged the court to opt against applying a tax to Bitcoin purchases and sales. She further argued that Bitcoin, while not legal tender, is still a form of money.

The publication of the European Court of Justices opinion follows the release of bitcoin VAT exemptions by various EU member states.

Not all European Union countries have come to support a VAT exemption for bitcoin. In December 2014, Estonia opted to apply VAT to the full amount of Bitcoin trades, not just the commission or the fee incurred by the transaction.