Cryptocurrencies and indirect taxes

With resolution n.72/e 2016, the Revenue Agency expressed its official and binding position, at least for the company that proposed the ruling, on the issue of direct taxes as regards the world of cryptocurrencies; however, in the context of indirect taxes and in particular as regards the application of value added tax and related obligations, everything is silent.

Rebus sic stantibus is necessary to refer to the current regulatory system (Presidential Decree 633/1972), and to the definition given by the Revenue Agency of cryptocurrency on the occasion of the aforementioned resolution, or of payment method. Let us therefore analyze the various cases taking the Dinastycoin (DCY) as the reference currency.

• Private subject A sells goods and services to private subject B. Subject A is paid in DCY. The operation carried out by subject A, provided that it is not carried out habitually and professionally and mainly, It is NOT subject to value added tax.
• Private subject A sells goods and services to Company/professional C. Subject A is paid in DCY. The operation carried out by subject A, provided that it is not carried out habitually and professionally and mainly, It is NOT subject to value added tax. Subject A will be required to issue a document showing his personal data and his tax code so that subject C can report the cost in the accounts.
• Company/professional C sells goods and services to Company/professional D. Person C is paid in DCY. The operation carried out by subject C, since it concerns the sale of goods or the provision of services in the entrepreneurial/professional field. is subject to value added tax at the rate applicable to the good or service (e.g. catering VAT 10%).

Furthermore, subject C is required to fulfill all connected obligations and therefore the issuance of the invoice and, when permitted, of the receipt or tax receipt.

What do I put on the invoice?

In addition to the usual data provided, as regards the numerical data to be reported on the invoice, the value in DCY may also be reported. In any case, the provisions of article 230 of directive 2006/112/EC, as amended by directive 2010/45/EU, must be respected. This provision states that «the amounts appearing on the invoice may be expressed in any currency, provided that the amount of VAT to be paid or to be regularized is expressed in the national currency of the Member State» and therefore in Euros.

Accountant Nicola Mazzoni