Crypto Mining in Ireland: VAT and the Trade Question

Updated 17 October 2026 · Information only · Not tax or financial advice

Short answer: Revenue's manual (TDM 02-01-03, last reviewed January 2026) says income from cryptocurrency mining will generally be outside the scope of VAT because the activity doesn't constitute an economic activity for VAT purposes. It does not set out how mining rewards are taxed for income tax or CGT, so we only report what the manual says and what it leaves open.

VAT points the manual makes

• Exchange of bitcoin for traditional currency: financial services consisting of that exchange are exempt under paragraph 6(1)(d) of the VAT Consolidation Act 2010 where the company doing the exchange acts as principal (it buys and sells as owner). The manual relies on the CJEU Hedqvist case (C-264/14), which held bitcoin to be a currency for VAT purposes.
• Goods and services sold for crypto: VAT is due in the normal way; the taxable amount is the euro value of the crypto at the time of the supply (pay with or accept crypto).
• Mining: generally outside the scope of VAT (no economic activity).

Income tax: the "trade" question

• Whether an individual is engaged in a financial trade of buying and selling crypto-assets is a question of fact; the label "trade" isn't enough.
• If a non-incorporated business makes a trading profit or loss on crypto transactions, it must be reflected in its accounts and taxed under normal income tax rules.
• The manual says nothing specific about whether a mining operation is a trade. That depends on the facts and general principles.

Practical points

• Keep records: mining receipts, electricity and equipment costs, euro values used (record keeping).
• When you later sell mined coins, the CGT rules for disposals apply (swap example); how to value the coins at receipt isn't set out in the manual beyond the "reasonable effort" valuation principle (valuation).

FAQ

Do I charge VAT on mining income?

The manual says the income is generally outside VAT scope; it doesn't address every set-up.

Is mining a hobby or a trade?

Not decided by the manual; it's a question of fact.

Do I need to register for income tax?

If you're a PAYE employee and are trading, you may become a chargeable person (PAYE employees).

What we could not verify

Sources (official)

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