The Swiss Tax Administration (ESTV) announces no VAT on bitcoin transactions

Regulation | June 16, 2015 By:

On Friday, June 12, The Swiss Tax Administration (ESTV) announced there will be no VAT on bitcoin transactions, according to Bitcoin Association Switzerland.

“This is the most reasonable way to classify Bitcoin in the context of VAT and we are fortunate that the tax administration agrees with our view. Bitcoin is a currency, and thus should also be treated like a currency,” said Bitcoin Association Switzerland president Luzius Meisser.

This is great news for Swiss bitcoiners, who actively trade the digital currency, and bitcoin accepting merchants, as they won’t have to pay tax on the service or good and the transaction itself.

For the European Union, which Switzerland is not part of, this question is still pending with the European Court of Justice holding a hearing on the matter on June 17th, according to Bitcoin.se.