Cryptocurrencies and VAT: when should it be applied?

The relationship between cryptocurrencies and VAT is one of the most misunderstood areas of crypto taxation. The 2015 CJEU ruling marked a before and after, but there are still situations where VAT can apply.

The Hedqvist ruling of the CJEU (2015)

The Court of Justice of the EU ruled in 2015 (Case C-264/14) that the exchange of Bitcoin for conventional currency (and vice versa) is a VAT-exempt financial transaction throughout the EU.

The reason: BTC (and by extension cryptocurrencies that function as a medium of exchange) are assimilated to foreign currency for VAT purposes.

In Spain, this is transposed in article 20.Uno.18 of the VAT Law: cryptocurrency purchase and sale operations between individuals or through exchanges are exempt from VAT.

What operations CAN be subject to VAT?

1. Cryptocurrency mining

Mining rewards do not carry VAT (the CJEU itself confirmed this). The miner does not provide an identifiable service to a specific customer that may be taxed.

However, if the miner sells used mining equipment, that sale may be subject to VAT.

2. Provision of services paid in cryptocurrencies

If you are self-employed or a company and charge in BTC or ETH for a service (web design, consulting, programming):

• The service provided does carry VAT.
• Cryptocurrency is only the means of payment.
• You must issue an invoice with VAT calculated on the value in euros of the service at the time of provision.

3. Exchanges and platforms: do they pay VAT?

Exchanges are exempt from VAT for the exchange itself. But if they charge fees (other than for pure exchange), those fees may be subject to VAT as an intermediary service.

4. Sale of crypto hardware (ASICs, GPUs)

The sale of mining equipment or related hardware is subject to VAT like any personal property.

5. Staking as a service to third parties (pools)

Staking pool operators who charge commission for their services could be providing a service subject to VAT. This point is under debate and there is no definitive resolution from the DGT for Spain.

6. NFTs: a special case

The VAT treatment on NFTs is complex:

• If the NFT represents a unique digital good (digital art), it may be a service provided electronically (subject to VAT).
• If it is simply a speculative token, it could be exempt.
• The European Commission studies specific legislation.

VAT abroad: OSS and digital services

If you sell digital services (software, digital content, etc.) charged in cryptocurrencies to customers in other EU countries:

• Apply the OSS (One Stop Shop) regime for VAT on digital services.
• The VAT rate is that of the buyer's country.

Practical recommendations

1. Self-employed: If you charge in crypto for services, issue an invoice in euros with VAT and receive the cryptocurrency as an equivalent means of payment.
2. Crypto-native companies: Consult with an advisor to determine which part of your services is exempt and which is not.
3. NFT creators: The terrain is uncertain. Prudence and binding consultation if the amounts are significant.

Updated: April 2026 | Fiscal year: 2025