Recently the Spanish Tax Authorities (the Directorate General for Taxation or "DGT") issued a tax ruling regarding the indirect taxation of sales and purchases made using electronic currency ("Bitcoin") in vending machines and ATMs.

The DGT argues that, being it is a business and/or professional activity, such transactions constitute a business that is subject to VAT, according to Article 2 of Council Directive 2006/112/CE, dated 28 November 2006, on the common system of VAT taxation (the "VAT Directive").

According to the position that the European Court of Justice took in case C-461/12 "Granton Advertising", the DGT maintains that virtual currency like Bitcoin works as a means of payment and, based on its intrinsic characteristics, it should be understood part of the group known as "other negotiable instruments"that is established under Article 135.1.d) of the VAT Directive, due to which their transfer is subject to and exempt from VAT.