VAT on Crypto Services

[Emma34]

Title:VAT on Crypto Services in the EU—Confusing Rules or New Tax Trap?

Post: Hey everyone, I'm hoping to get some insights here. I'm based in the EU and recently started offering freelance crypto-related services (like blockchain audits, NFT consultations, etc.). I'm now getting clients from different EU countries and even outside the EU.

Here’s the confusion: Do I need to charge VAT on services paid in crypto? Some say if the client is outside my country, I don’t charge VAT. Others say I still have to report it and pay VAT on the crypto’s value. The local tax office isn't super clear either.

Also, if I receive payment in Bitcoin or USDT, how is the VAT calculated? On the crypto value at the time of the invoice, or when I convert it to fiat?

Would love to hear how others handle this. Anyone with experience dealing with VAT and crypto payments in the EU?

Thanks in advance! 🙏

[EarnOnVictor]

Here’s the confusion: Do I need to charge VAT on services paid in crypto? Some say if the client is outside my country, I don’t charge VAT. Others say I still have to report it and pay VAT on the crypto’s value. The local tax office isn't super clear either.

My experience with such services abroad suggests that you shouldn't charge VAT for clients outside the EU, but I advise you to properly document it and keep the record for future reference. However, you should charge your local VAT rate for clients within the EU. But ensure you learn the rate applicable to the payment.

Also, if I receive payment in Bitcoin or USDT, how is the VAT calculated? On the crypto value at the time of the invoice, or when I convert it to fiat?

For fairness, the crypto value is used instead of the fiat value.

[YOSHIE]

Would love to hear how others handle this. Anyone with experience dealing with VAT and crypto payments in the EU?

As I have read the VAT policy for crypto currency.

The EU exempts crypto-to-fiat transactions from VAT, but some crypto-related services, including mining and consulting, remain taxable. Businesses holding crypto assets also face corporate tax, though Malta and Portugal maintain lower rates than high-tax countries like France.

I can conclude, almost all countries apply the same Sampir VAT tax, as the quote above, maybe what makes the difference is the VAT Law and The tariff applied, my country applies a VAT 0.11% of the transaction value, that applies to the Crypto Exchange registered in the government.

[davis196]

1.Read the national VAT legislation of the country where you live. If there are any European Union VAT laws and regulations, you should read them as well.
2.Some EU countries have a minimum yearly income requirement for people and companies, in order for those people and companies to charge VAT to their customers. In my country the min. income requirement was 51K euro per year. However, such requirements probably don't exist in other EU members.
3.You shouldn't charge VAT to customers outside your country. Goods and services, which are exported cannot be charged with a Value Added Tax.

[sunsilk]

If your country is covered by the VAT of what EU applies to all workers, then do as what the corporations do with their products when they receive a bump for their taxes.

They add the tax on their products which is also shouldered by the customers. In short, you should add that VAT through the invoice of your clients if you don't want to shoulder that.

And so, let them(clients) shoulder it for you and you'll have to add that to the service you provide to them.