FDD24More and more people and companies invest in cryptocurrency or use it to pay. Yet it is often forgotten that transactions involving virtual assets create tax obligations — which must be calculated and declared correctly.
When does a tax obligation arise?
A taxable event arises not only when cryptocurrency is sold for euros. It typically also arises when:
- one cryptocurrency is exchanged for another;
- cryptocurrency is used to pay for goods or services;
- assets are received from activity involving virtual assets.
Each such event may produce a gain or a loss that must be assessed.
Individuals and companies
Taxation depends on who carries out the transactions. A gain realised by an individual is generally subject to personal income tax, while profit earned by a company from crypto operations is included in the corporate income tax base. The exact treatment depends on the nature of the activity and the circumstances.
Why records matter
Without an orderly transaction history it is almost impossible to calculate the tax correctly. We recommend recording the date, amount, currency and exchange rate at the moment of acquisition and disposal of each transaction.
VAT nuances
Crypto-related operations also have VAT aspects — for example, exchanging into traditional currency or paying with crypto. These are assessed separately, depending on the specific situation.