The European court also granted tax exemptions to transactions with bitcoin

Moscow. October 22. The European court decided that operations with bitcoin and other virtual currencies in the EU territory should be exempted from value added tax, reads the statement of the court. This decision equates virtual currency for traditional currencies in terms of taxation, the newspaper The Wall Street Journal.

In accordance with the court order, the operation to exchange traditional currencies for bitcoins must be free from value added tax, as EU rules prohibit the charging of such tax on operations foreign exchange, notes and coins.

This resolution can provide substantial support bitcoin, because it removes the danger that the imposition of a tax on transactions with the virtual currency will increase the cost of its purchase and use, say experts.

The European court’s decision also removes the question of what types of assets should include the virtual currency. Although Britain has previously acknowledged bitcoin currency, tax authorities of some countries, including Sweden and Germany, declared that bitcoin should be considered rather a kind of goods, transactions with which shall be subject to value added tax.

This ruling is the “first step towards the approval of bitcoin as a real alternative to national currencies,” said Richard Asquith, Vice-President of Avalara, working in the sphere of control of observance of tax discipline.

Established in 2008 by a programmer or group of programmers, known under the nickname Satoshi Nakamoto, Bitcoin (bitcoin or BTC) is one of the most popular alternatives to traditional currencies, is a software code that is not regulated by any country or banking Supervisory authority in the world. Does not have a single emission center. The Bitcoin issue is limited algorithmically: theoretically, every owner of a powerful computer can “mine” bitcoins by using computers, however there is a limit to the total number of money in circulation.