Ownership or (active) trading of digital currency may be subject to taxation. Although Bitvavo does not provide legal or tax advice with the following article, it broadly explains how to handle your digital currency in tax reporting in The Netherlands.
Ownership of Digital Currency
According to the Dutch Tax Administration, owning digital currency is generally considered part of 'other assets' in box 3. If your assets in box 3 exceed the exempted amount, you are liable for taxes on this.
To determine the value of your assets, the value on January 1 of the tax year is considered. According to the Dutch Tax Administration, cryptocurrencies are part of your assets in box 3. You report the fair market value of cryptocurrencies on January 1 of the tax year (valuation date) in your tax return.
Return Classes 1 and 2
The overview is divided between savings and investments. You will find the balance on the valuation date on the Bitvavo account per category. Thus, you use the two entries to separately report the return on your euro balance, also known as savings (return class I), and the return on investments (Crypto) (return class II).
Requesting Annual Statement
If you navigate to 'Transaction History' in the top menu, press the 'Export' button to request an overview. Currently, you can only do this through Bitvavo on a web browser.
Then, select the overview you want and download the file using the 'Export' button.
The balance statement for 2024 will be available on March 1st 2025.
Active Trading in Digital Currency
Profits from trading digital currency are generally considered part of box 3. Only in some (exceptional) cases may the Dutch Tax Administration argue that there is a profit from business operations or income from other activities, making it taxable in box 1.