The exchange of cryptocurrencies for real currencies and the reward received for the production of cryptocurrencies are exempt from VAT (Value Added Tax), reveals the Local business newspaper “Jornal de Negócios” in this Tuesday’s report.
The clarification was given by the Tax and Customs Authority to a company that wants to do cryptocurrency mining and then published online a document, citing a ruling by the European Court of Justice (ECJ) on bitcoins.
“Considering the ruling of the CJEU (…) the exchange of cryptocurrency for ‘real’ currency constitutes a supply of services for consideration, exempt from VAT”, can be read in the tax authorities’ binding information. Finance also adds that remuneration is based in the same direction, according to the economics newspaper.
The tax authorities clarify the fiscal framework of this activity after having previously stated that income from cryptocurrencies did not pay Personal Income Tax.
While other countries ban crypto others start offering tas free operations. Let see which country is able to attract talented people to their country in the next years, when the real crypto adoption happens.