July 25 2018

Draft guide on VAT treatment of virtual currency – consultation launched

Source: IBFD Tax Research Platform News

On 21 July 2018, the Ministry of Finance published a draft guide on the VAT treatment of virtual currency. The draft guide, among other things, addresses the following:

  • the acceptance of virtual currency as a payment method;
  • calculation of the taxable amount in virtual currency based on the fair market price;
  • currency exchanges;
  • the transfer of coins or tokens;
  • the mining of virtual currency;
  • the initial coin and token offering;
  • conversion of virtual currency amounts received in CHF;
  • VAT deductions in the case of invoices in cryptocurrency;
  • conversion of virtual currency amounts stated in an invoice to CHF or a foreign currency; and
  • bookkeeping obligations for invoices received in virtual currency.

Comments are due by 16 September 2018.