Digital currency and tax in The Netherlands

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.
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Then, select the overview you want and download the file using the 'Export' button.

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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.

You remain responsible for correctly submitting your tax return at all times. The information in this article and the annual statement is not intended as tax advice. All tax consequences resulting from the use of the overview and this article are at your own risk and expense. You are responsible for consulting your own tax advisor, and it is encouraged to do so when filing your tax return.

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