VAT Treatment of Cryptocurrency Intermediation Services

Abstract

The bitcoin blockchain was construed as a self-regulating system that would eliminate financial institutions serving as trusted third parties. Instead however, various new intermediaries emerged carrying out economic activities related to the blockchain. The most common 'gateways' are cryptocurrency exchange platforms and wallet providers. Moreover, bitcoin's main purpose has shifted from means of payment to speculation. In this article, the authors assess how the mentioned gateways are to be treated for value added tax purposes and challenge the Hedqvist-decision of the European Court of Justice against the backdrop of how bitcoins are being used today. Bitcoin, Ethereum, blockchain, cryptocurrency, token, exchange platform, wallet provider, intermediation, agent, undisclosed agent