Crypto taxation on Spanish Tax Journal — Álvaro Crespo Garcíahttps://spanishtaxjournal.com/en/categories/crypto-taxation/Recent content in Crypto taxation on Spanish Tax Journal — Álvaro Crespo GarcíaSpanish Tax Journal — Álvaro Crespo Garcíahttps://spanishtaxjournal.com/img/og-cover-en.pnghttps://spanishtaxjournal.com/img/og-cover-en.pngHugoen-USThe CJEU clarifies the VAT treatment of the exchange between a video-game virtual currency and traditional currencieshttps://spanishtaxjournal.com/en/2026/04-28/cjeu-virtual-currency-video-game-vat/Tue, 28 Apr 2026 00:00:00 +0000https://spanishtaxjournal.com/en/2026/04-28/cjeu-virtual-currency-video-game-vat/The CJEU, in its judgment of 5 March 2026 (case C-472/2024), excludes the closed-use virtual currency of a video game from the currency exemption of article 135 of the VAT Directive and delimits the regime of multi-purpose vouchers.Video-game virtual currency and VAT: the CJEU confines the Hedqvist doctrine and returns the transaction to the general regimehttps://spanishtaxjournal.com/en/2026/04-28/nota-cjeu-virtual-currency-video-game/Tue, 28 Apr 2026 00:00:00 +0000https://spanishtaxjournal.com/en/2026/04-28/nota-cjeu-virtual-currency-video-game/The CJEU clarifies that virtual currency confined to the internal use of a video game is not a non-traditional currency for the purposes of article 135(1)(e) of the VAT Directive and is subject to the tax under the general rule.The Court of Justice of the European Union, in its judgment of 5 March 2026 (case C-472/2024, Žaidimų valiuta), clarifies the scope of its own Hedqvist doctrine (case C-264/14, 2015) on the VAT exemption applicable to transactions concerning non-traditional currencies. The doctrine requires the cumulative concurrence of two conditions: (i) that the parties accept the currency as an alternative to legal-tender money; and (ii) that the currency have no purpose other than to serve as a means of payment. The currency confined to the internal use of a video game satisfies neither: it lacks generalised acceptance outside the closed environment and has a game purpose in addition to that of a means of payment. The transaction of exchange between that virtual currency and traditional currencies is therefore subject to VAT under the general rule of article 73 of Directive 2006/112/EC, on the taxable base of the full sale price.

The practical consequence affects operators of digital platforms, video games and issuers of utility tokens —digital units usable only within a specific platform— with clients established in Spain. It is advisable to review the VAT characterisation of the exchange transactions managed, as well as the chargeability of the tax to the end user. The judgment clearly delimits a hitherto ambiguous terrain: internal platform currencies, game currencies and closed utility tokens are clearly subject to VAT under the general rule, with the exemption of article 135(1)(e) of the Directive not being applicable to them.

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