Ireland: Crypto Currencies

The Irish Revenue Services have issued a Brief to clarify how normal tax rules apply on transactions involving crypto currencies and altcoins. For VAT purposes, the Revenue, taking into account a European Court of Justice ruling, regarding crypto currencies as “negotiable instruments” and therefore exempt from VAT. Financial services consisting of the exchange of bitcoins for traditional currency are VAT-exempt where the company performing the exchange acts as principal. EG: buys and sells crypto currencies acting as the owner of the virtual currency.