The European Court of Justices has ruled today that
- transactions which consist of the exchange of traditional currency for units of the bitcoin virtual currency and vice versa, in return for a price (on the one hand, paid by the operator to purchase the currency and, on the other hand, the price at which he sells that currency to his clients), constitute the supply of services for consideration (art. 2 (1) (c) of Council Directive 2006/112/EC of 28 November).
- such transactions are exempt from VAT in accordance with article 135 (1) (d) of Directive 2006/112.
Virtual coins are very controversial since for several reasons.
This week it has been reported that the ONIF (National Bureau of Fraud Investigation) is requestingIn Spain, this week has been reported that the ONIF (Nacional Bureau of Fraud Investigation) is requiring information from businesses that accept payments with bitcoins.
Meanwhile, FATF has just published yesterday a new report on Emerging Terrorist Financing Risks indicating there is an increase on the use of virtual currencies and other “anonymous” means of payment by terrorist organizations