The ruling of the European Court of Justice (ECJ) was well- received by many CEO of bitcoin exchanges in Europe.
Indeed, last week, the ECJ has ruled that all bitcoin transactions should be exempt from Value Added Tax (VAT).
By rule, there will be no tax on “currency, bank notes and coins used a legal tender.”
This has all started when David Hedqvist, a resident of Sweden and a forum operator, had requested an explanation on the VAT policy for bitcoin exchanges.
The Swedish High Court then conducted an investigation and then ruled that no VAT should be applicable to buying or selling over bitcoin exchanges over the country.
According to the chief operating officer of Bitcurex, Filip Godecki anticipated that this decision will help to decrease the barriers to greater adoption of the digital currency.
He stated, “This Court decision is a nod in the direction of the primary functions of the virtual currency: payments. The decision may become an impetus for the development of crypto payments in the EU, and thus the Bitcoin ecosystem as such.”
Nejc Kodric, the chief executive officer of Bitstamp explained, “The ruling brings additional clarity and legal certainty to an economy which is still a work progress.
Thanks to Mr. Hedqvist, all bitcoin business 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.”
The co- founder of Paymium, Pierre Noizat stated that this decision will have a positive effect on his exchange, “At first, I would like to say that it is one more step towards clarifying the context of our operations as a Bitcoin exchange and payment solutions provider.
Such as clarifications are perceived by businesses and individual citizen as reduction of risks and uncertainties surrounding the adoption of an innovation.”
This ruling has removed the threat of taxes which would have raised the cost of purchasing or using the digital currency in Europe.
The chief executive officer of ShapeShift, Erik Voorhees believes that this ruling has placed Europe in such a position that it can fully capitalize on the nascent technology and the businesses that want to work with it.
He further stated,“It’s refreshing to see politicians who aren’t taxing and regulating everything in sight. And [the ruling] is going to tip the scales further away from the US and toward Europe as the center of digital currency innovation.”