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28 September 2016

Italian Tax Authorities clarify VAT treatment of Bitcoin transactions

The Italian Tax Authorities have issued guidance on the value-added tax (VAT) treatment of financial transactions related to the virtual currency, Bitcoin. Resolution no. 72, dated September 2, clarifies that Bitcoin transactions undertaken by economic operators (businesses) should be considered to be VAT exempt services with no right of deduction. The Tax Authorities consider that Bitcoin transactions should be included in the definition of "transactions related to foreign currency with an official exchange rate and credits in foreign currency," regulated by Article 10, paragraph 3 of the Italian VAT law.

A Tax Alert prepared by Ernst & Young Italy, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1641

Document ID: 2016-1641

 

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