Portugal’s taxman publishes guidelines for cryptocurrency taxes

The Portuguese Tax Authority (PTA) has created a framework that defines a handful of taxes for cryptocurrencies, helping to provide a great amount of clarity on the murky subject. The push for the guidelines came from an unidentified company, possibly in the utility sector, which was looking to launch an ICO and a token built on top of Ethereum network. The PTA announced that transactions that contain a token could, in principle, be considered as a critical transfer of goods. To that end, the tokens should have VAT liability. However, the PTA also acknowledged that the digital coins could be eligible for the legal tender VAT exemption. The PTA explained that the exemption would only be applicable in instances where the transfer of the tokens occurs in an alternate form of payment. This means that yes, the tokens most likely would be exempt, provided they are exchanged using a defined legal currency. Since the VAT system is used among all of the EU member states, the decision by the PTA, in its estimation, is valid for all of the EU states.

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