Tax Treatment of Cryptocurrencies

Cryptocurrencies are digital currencies that use cryptography for security. They exist only in digital form and are not issued by a central authority such as central banks. Instead, they use a decentralized system to record transactions and manage the issuance of new units. The first and most well-known cryptocurrency is Bitcoin. Cryptocurrencies can be used to purchase goods and services, and are also traded for profit. They are stored in digital wallets, and transactions are recorded in a public ledger called blockchain, which is a distributed ledger enforced by a disparate network of computers.

No, there are currently no accounting rules for recording and valuing cryptocurrencies, either in the E.L.P. or in the IFRS, although there are companies that are active in the field of cryptocurrency transactions and are supervised by the Special Capital Market Commission.

Cryptocurrencies are accounted for in the same way as currencies and foreign exchange, as a medium of exchange2. If used as an investment vehicle or as reserves, the possibility to include the cryptocurrency in one of the cases of assets such as financial assets, inventories or intangible assets may be considered, depending on the nature, purpose and circumstances of the holding and of the use of cryptocurrency ΣΛΟΤ 104/ΕΞ27.02.2018)

According to the current provisions, digital currencies are taxed as exchange differences, i.e. the difference between the purchase price and the sale price, at a rate of 15%. Also, the commission collected by payment service providers when buying or selling digital currencies, as well as the transactions themselves, are exempt from VAT, according to the decision of the European Court of Justice, based on the EU's unified tax policy.

The relevant legislation is also expected in Greece in the light of common and unified transaction and tax policy, so that there is a clear framework for digital-virtual currencies.