Finland classifies Bitcoin as VAT-exempt financial service

Thursday 20 November 2014 00:14 CET | News

The Finnish Central Board of Taxes (CBT) has classified Bitcoin as a VAT-exempt financial service, reports.

The classification is contained in ruling 034/2014, which states that Bitcoin purchases qualify as “banking services” under the EU Value Added Tax (VAT). The ruling was issued after a court classified Bitcoin as a payment instrument and sets Finland’s approach to the cryptocurrency apart from most European jurisdictions, which generally treat Bitcoin as a commodity.

Different European countries have taken a variety of approaches to Bitcoin taxation and the application of VAT rules. While some seek to apply VAT to all digital currency sales, others simply ignore them, leaving them unregulated in terms of taxation, or apply capital gains or corporate tax on trading or mining profits.

In 2014, the European Banking Authority (EBA) warned financial institutions against getting involved in the digital currency space until the industry is regulated.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Finland, CBT, regulators, Bitcoin, classifies, VAT-exempt, commodity, financial service
Categories: DeFi & Crypto & Web3
Countries: World
This article is part of category

DeFi & Crypto & Web3