Change In VAT Practice: FTA Reaffirms Support For Crypto

In a change of practice, the Federal Tax Administration recognizes the entrepreneurial nature of foundations and associations in the crypto sector for VAT purposes. This strengthens the position of such organizations and creates legal certainty.

1. Change of Practice

In a recent statement, the FTA, after a detailed examination of the special circumstances of foundations and associations in the crypto industry that promote and develop open source software in accordance with their purpose, concludes that they do not pursue an idealistic purpose, even if they are non-profit organizations according to their statutes.

2. Enterpreneurial Activity

However, it is still a prerequisite for VAT liability and must be checked whether such associations and foundations operate a business within the meaning of Art. 10 para. 1bis of the VAT Act. Thereby, the development and promotion of the open source software and the generation of income from services in connection with