The agency reportedly provided the clarification to a local crypto mining company, publishing an official ruling document. In the document, the authority states that the exchange of crypto for fiat money is free of VAT, adding that crypto users do not have to pay any income tax.
Portugal’s Tax Authority has clarified that both cryptocurrency trading and payments in crypto will not be taxed in the country, Cointelegraph en Español reported on Aug. 27.
According to a report published on Aug. 26 by Portuguese business newspaper Jornal de Negócios, the Portuguese Tax and Customs Authority have confirmed that crypto transactions or payments are exempt from Value Added Tax (VAT).
Portugal cites a 2015 ruling for crypto tax exempt
In the official statement, the Portuguese tax authority cited a 2015 ruling by the European Court of Justice regarding the case involving major Swedish Bitcoin portal Bitcoin.se and its moderator David Hedqvist.
As reported at the time, the court ordered that Bitcoin is a means of payment and that the exchange should therefore be exempted VAT obligations. However, the Swedish Tax Agency subsequently argued against the ruling, claiming that the court did not fully understand the matter.
Earlier stance on crypto
The confirmation follows a previous tax ruling by the Portuguese tax authority that cryptocurrencies are not taxed in the country. A document published by the agency in 2016 states that income from the sale of crypto in Portugal is not subject to income tax.
Earlier in 2013, the central bank of Portugal, the Banco de Portugal issued a statement citing a 2012 crypto-related paper by the European Central Bank.
The Portuguese bank raised concerns over the ECB’s Bitcoin recognition as a “phenomenon of innovation in virtual currency models”, claiming that Bitcoin cannot be considered a safe currency as it its issued by unregulated entities.
Andreas Antonopoulos Announces New ‘Mastering Lightning Network’ Book
Andreas Antonopoulos announced his new “Mastering Lightning Network” book, co-authored by René Pickhardt and Lightning Labs CTO, Olaoluwa Osuntokun.
Antonopoulos, Osuntokun and Pickhardt announced their new book, “Mastering Lightning Network”, in a YouTube video published on Aug. 28. In the video, Antonopoulos noted that the three will start writing in September and that they expect to need about a year to release it. He also noted:
“We’re inviting everyone in the community to help us with contributions.”
On a quest for Lightning Network education
Pickhardt explained that what motivated him to take part in this endeavor is the lack of educational material concerning Bitcoin’s Lightning Network (LN). At first, he started working on an open-source book about LN. Then, the current collaboration began after Antonopoulos reached out directly.
Antonopoulos explained that the book is meant for people new to Bitcoin’s (BTC) scalability solution. He also added that it will also cover applications designed to run on top of LN and building them.
Lastly, he explained that the book will be open from the start, allowing everyone to read it for free and contribute to it or use excerpts from it in their work. Antonopoulos is also the author of “Mastering Bitcoin”, “The Internet of Money” and “Mastering Ethereum.”
In June, Cointelegraph released an exclusive interview with Antonopuolos, during which he noted that blockchain can bring financial disintermediation and said:
“The lack of financial inclusion is not a ‘bug’ of the traditional financial system. It’s a direct result of the regulatory architecture and the intermediaries policies.”