IOTA Workshop on Tax Treatment of Cryptocurrencies

Adrienn Juhász's picture
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A two-day digital workshop was held by IOTA on 29th-30th November 2021 about the Tax Treatment of Cryptocurrencies. With 222 participants from 38 IOTA member tax administrations attended the event, who are all facing multiple challenges understanding the nature and economic effects of cryptocurrencies in their constituencies – the workshop aimed at addressing some of these challenges.

Because of the lack of regulatory framework and supervision, using cryptocurrency as an alternative way of payment has its potential tax evasion risks. It is important for tax administrations to have a clear approach regarding how they collect relevant information concerning economic activities based on cryptocurrency transactions and to develop appropriate compliance programmes.

The first plenary session of the workshop ran under the theme “Collection of data on cryptocurrency transactions/assets and compliance programmes” with presenters including:

  • “Compliance and guidance on crypto assets” by Thea Brønlund (Norway)
  • “The taxation of crypto assets in Sweden with focus on natural persons conducting crypto trading as a business” by Simon Kullgren (Sweden)
  • “Tax treatment of cryptocurrency in Spain and recently implemented reporting implemented reporting obligations” by Victoria Pérez de la Cruz (Spain)

Country presentations on the second day revolved around the topic “VAT and audits strategies”, specifically:

  • “VAT matters on transactions related with cryptocurrencies” by Charalampos Kounadis (Greece)
  • “Comparison data audits and group requests as a way to detect cryptocurrency transactions” by Juho Hasa (Finland)
  • “Way of detection revenue from cryptocurrency transactions – bank transactions” by Petra Janež (Slovenia)
  • “Blockchain based audit techniques” by Kristof Vanderhasselt (Belgium)

Attendees could raise questions during the Q&A at the end of each Session. In addition, participants were actively involved in a group discussion (day 1 of the event) and in a Final Panel Debate (day 2 of the event).

This workshop was successful in raising awareness of the latest developments in detecting and fiscal control over transactions in cryptocurrencies and gave a better understanding of challenges and nuances of implementing compliance programs for individuals or businesses involved in transactions with cryptocurrencies. It also highlighted ways to reach out the users of cryptocurrency with information and guidance on tax liabilities and obligations.

Presentations, group discussion notes and the recording on the event are available for registered IOTA website users on the event’s webpage.