Bitcoin transactions will be exempt from Value Added Tax (VAT), the European Court of Justice (ECJ) has ruled.According to the Financial Times, the ECJ said that bitcoin transactions "are exempt from VAT under the provision concerning transactions relating to currency, bank notes and coins used as legal tender."The ECJ's long-awaited ruling comes after its Advocate General Juliane Kokott urged the court to refrain from applying tax to bitcoin purchases and sales, in an opinion document published in July.The European court first looked into bitcoin taxation in June last year after the Skatterverket – Sweden’s tax office – challenged a court decision that ruled bitcoin transactions in the country should be exempt from VAT, following a dispute with bitcoin forum operator Daniel Hedqvist. The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.Have breaking news or a story tip to send to our journalists?

Previous Article FATF: Virtual Currencies Could Fuel Terrorism Financing Next Article Bitcoin Groups and Law Enforcement Unite to Form Blockchain...BRUSSELS Exchanging traditional currency for the digital currency bitcoin online should be exempt from consumption taxes just like other transactions of banknotes and coins, the European Court of Justice said on Thursday.Europe's highest court ruled in response to a request by Swedish tax authorities, who had argued bitcoin transactions should not be covered by a European Union directive exempting currency transactions from value added tax (VAT).The court ruled that bitcoins should be treated as a means of payment, and as such were protected under the directive."Those transactions are exempt from VAT under the provision concerning transactions relating to 'currency, bank notes and coins used as legal tender'," the ECJ concluded.(Reporting by Robert-Jan Bartunek; Editing by Tom Heneghan) Our Standards: The Thomson Reuters Trust Principles Tesla, others seek ways to ensure drivers keep their hands on the wheel WASHINGTON Automakers are using tiny cameras, sensors to track drooping heads, steering wheel monitors and audible alerts to ensure drivers pay attention when using advanced driver assistance systems, like Tesla’s Autopilot, that allow drivers to take their hands off the wheel.

Muslim group launches cellphone app to report hate crimes NEW YORK Hoping to get an accurate count of anti-Muslim hate crimes in the United States, the Council on American-Islamic Relations (CAIR) on Friday launched a mobile app allowing victims to report bias incidents.Photos of the week XEarlier this week, the European Court of Justice decided to exempt bitcoin transactions from Value Added Tax (VAT).bitcoin bcaIn so doing, the court effectively recognized bitcoin as a legitimate means of payment in Europe, putting it in the same realm as other currencies for tax purposes.bitcoin miner lazadaThe ruling comes months after court advocate general Juliane Kokott said the court should refrain from applying tax to bitcoin sales and purchases in an opinion published in July.micro bitcoin casino

Europe's highest law court first began looking into bitcoin taxation in June last year after the Swedish tax office challenged a court decision which ruled that transactions in the digital currency should be exempt from VAT, following a dispute with Daniel Hedqvist, a forum operator who at the time wanted to establish a bitcoin brokerage.Unsurprisingly, the court's ruling was well-received by exchange operators in Europe, some of whom told CoinDesk that the decision is a positive step for both the business of buying and selling digital currencies and the technology as a whole.ethereum silicon valley hboSome operators saw the event as a watershed moment for bitcoin in Europe.bitcoin-cli installFilip Godecki, COO at Poland-based Bitcurex, predicted that the decision will help reduce barriers to greater adoption of the digital currency.highest bitcoin hash rate

"This Court decision is a nod in the direction of the primary functions of the virtual currency: payments," he said."The decision may become an impetus for the development of crypto payments in the EU, and thus the Bitcoin ecosystem as such."Nejc Kodric, CEO of Bitstamp, said that the ruling "brings additional clarity and legal certainty to an economy which is still a work in progress".Hedqvist, all bitcoin businesses serving EU customers can now breathe a sigh of relief knowing that they are safe from surprises arising from their national or EU VAT regulations," he said.According to LocalBitcoins founder Nikolaus Kangas, the decision is "a big milestone for bitcoin in general"."This kind of ruling is clearly another step to legitimize bitcoin as a real currency," he said in an email.Paymium co-founder Pierre Noizat told CoinDesk that while his firm is still looking at the implications of the ruling, the decision is being interpreted as a positive one for the exchange."At first, I would say that it is one more step towards clarifying the context of our operations as a Bitcoin exchange and payment solutions provider," he said.

"Such clarifications are perceived by businesses and individual citizen as reduction of risks and uncertainties surrounding the adoption of an innovation."Alberto Gomez Toribio, CEO of Coinffeine, was among several exchange operators who said they believe the decision will help make Europe a more business-friendly environment for companies looking to build products and services around bitcoin."Regulation is proving to be more efficient than the technology to organise the rights and the correct functioning of the market, and I am glad," he said in an email.CEX.io's chief legal officer Victoria Polyakova called the ruling "absolutely reasonable and quite expected"."The official position of the Court makes the EU zone even more bitcoin-friendly than it was before, unlike, for instance, some Eastern European and Central Asian countries," she said.ShapeShift CEO Erik Voorhees shared the view that the ruling puts Europe in a position to fully capitalize on the nascent technology and the businesses that want to work with it.