VAT Issues - Crypto Currencies And Mining

Bitcoin, tokens, ICO, blockchain, mining - Terms related to crypto currencies are on everyone's lips. However, there are many open questions and uncertainties, especially regarding the VAT treatment of individual transactions with digital currencies. The fact that the Swiss Federal Tax Administration (SFTA) has not yet made an official statement on the subject does not make things any easier.

The services provided by taxable persons in return for payment (deliveries or services) are subject to VAT, unless they are exempt from tax (Art. 18 para. 1 VAT law). A typical VAT-liable service involves the sale of goods in Switzerland. If, on the other hand, funds are paid without counter-performance of a service, there is no performance relationship in the sense of value-added tax. These types of funds flows do not qualify as consideration and are therefore not subject to VAT.