Cryptocurrency trading and payments using digital currencies in Portugal are not subject to value added tax. This was reported by local media with reference to the statement of the tax administration of the country.
57_INFORMACAO_14436 by BlockchainJournal on Scribd
The agency provided relevant clarifications to an unnamed Portuguese mining company.
“The exchange of cryptocurrencies for fiat money does not entail the need to pay VAT. Cryptocurrency owners do not have to pay income tax for operations with this type of asset, ”the official document says.
It is noteworthy that the statement of the Portuguese tax authorities refers to the decision of the European Court of 2015, issued in the case of the Swedish cryptocurrency portal Bitcoin.se and its moderator David Hedquis. Then the court recognized Bitcoin as a means of payment and ruled that its exchange should not be subject to VAT. Later, the Swedish Tax Administration opposed this decision, saying that the court did not fully understand the details of the case.
In 2016, the Tax Administration of Portugal already stated that operations with cryptocurrencies are not taxed on the territory of the state, as well as income from sales of cryptocurrencies.
Recall that in November 2017, the head of the central bank of Portugal Helder Rosalino said that the financial regulator does not consider bitcoin as a currency , since it is not a means of saving capital and cannot be used for lending.
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