Hacienda Floral de Navarra pointed out in a report that there is no exemption from paying VAT on commissions charged for the use of a decentralized finance platform, according to the response to a query issued by the Blockchain Arbitration Society (BAS) and published on its website this Wednesday, December 22, 2021.
The specific case deals with a DEX configured through a DAO called Bamboo DeFi, which according to the authority consulted on the subject of taxation of the commissions generated by its use, if it must pay the Value Added Tax and is not exempt of the mentioned tax.
“The agency concludes that the service consisting of enabling the use of the exchange platform to the holders of the tokens, and that therefore it will be subject to and not exempt from Value Added Tax,” says BAS on its website.
At the end of 2015, a judgment of the Superior Court of Justice of the European Union was made, indicating that the cryptocurrencies had been legal tender, and therefore will have a VAT tax imposition since it was considered as a currency.
In the report presented by the Legal Director of Hacienda Foral de Navarro confirms that cryptocurrencies and other digital currencies constitute a means of payment.
The commissions, which the promoter company-according to the agreement with the DAO collect-do not derive properly, indicates the tax authority, from the ownership of the tokens or from the operations carried out with them, but they will demand for reasons of use that the holders of Bamboo DeFi make the platform decentralized.
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