Tax treatment of cryptocurrencies – what do you have to know

Tax treatment of cryptocurrencies in Slovenia

Tax treatment of cryptocurrencies

The Financial Administration of the Republic of Slovenia (Furs) has published new explanations regarding tax treatment of cryptocurrencies and crypto tolkens. The main topic of these explanations is tax treatment of cryptocurrenices.

If you will still need help after reading the explanations, you can always turn to out tax consultants. You can also consult with us before opening a company that will trade or mine crypts. Do not forget, registration of the company is free of charge at our offices!

Tax treatment of crypo tolkens from the point of view of VAT

In explanations of Furs you will find more information about tax treatment of operations with virtual currencies. The novelty of their latest edition is a more detailed description of the tax treatment of crypto tolkens.

At Furs, they explain that those companies that issue crypto tolkens must deduct a value added tax (VAT). The same applies to crypto tolkens that have a nature of security and bring income to investors. For example, the payment of dividends or the profit sharing from the business.

However, if companies issue crypto tolkens, for which we do not know, for which products and services you will be able to replace them in the future, are not subject of VAT. The condition of the direct connection between the service rendered and the received equivalent is not fulfilled, therefore the token issuance transaction is not subject of VAT. You will have to pay this tax once you will use the token to pay individual products and services.

Tax treatment of cryptocurrencies

Furs again clarified the tax treatment of individuals and companies involved in the process of cryptomining. “Cryptocurrency mining is a non-VAT transaction,” they wrote. Miners also do not have the right to deduct VAT in the purchase of software and hardware for the mining of crypts. ‘The only right to deduct would be in cases where the confirmation of transactions with cryptocurriences would be exempt from VAT. In this case the suscriber outside of the Union would confirm the cryptocurrencies.

Income of natural person in the form of a virtual currency, for example bitcoins, in mining, is taxed as a second income. This is according to Article 105 of the Income Tax Act – Zdoh-2. The level of income in euros shall be determined taking into account the value of cryptocurrencies in euros at the time when the income is received.

From income from capital income, you do not have to pay income tax. You do not have to pay any tax on capital gains.

Otherwise, if a company or a natural person owns crypocurrency and is performing an activity – it has a registered status as a sole trader. If an independent entrepreneur trades with a cryptocurrencies or receives bitcoins with mining, then the profits will be taxed according to the taxation of income from the activity.

Read an article about cryptocurrency mining!

Tax treatment – contact us for more information!

If you have more questions about tax treatment, contact us via email: If you would like to register a company in Slovenia, email or call us to: 00386 1 6006 270. Or 00386 40 530 718 (Viber, WhatsApp).

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