Cryptocurrency payments and trading will not be taxed in Portugal

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.

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.

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