Digital currency and tax
Ownership of (active) trading in digital currency can be subject to tax. Despite the fact that Bitvavo does not want to give legal advice on tax.
Owning digital currency
According to the Dutch Tax Authorities, the ownership of digital currency often belongs to the 'other assets' in box 3. If your assets in box 3 are higher than the exempt amount, you are liable for tax on this.
In order to determine the value of your possessions, the value of the assets on 1 January of the year for which you submit tax returns is examined. To help you with this, Bitvavo will send you an annual statement before you are required to submit your tax return, in which you can easily read the value of your digital currency at Bitvavo.
Actively trading in digital currency
Profits from trading in digital currency are also often included in box 3. Only in some (exceptional) cases can the Dutch Tax Authorities state that profits from the company or result from other activities are the result of which it should be taxed in box 1.
Please note: you remain responsible at all times for correctly submitting your tax return in accordance with the laws and regulations applicable in your country.