Hive Digital Takes Swedish VAT Dispute to European Commission

Swedish tax officials have re‑examined the VAT treatment of Hive Digital Technologies’ subsidiaries, Bikupa Datacenter AB and Bikupa Datacenter 2 AB, concluding that the entities were mining cryptocurrency for their own benefit. This classification removes the right to recover input VAT on major expenses such as hardware, cooling and electricity.

Hive’s Position

Hive argues that its Swedish subsidiaries provide compute‑power services to external customers under contract, akin to a data‑center hosting arrangement. Under EU VAT rules, taxable supplies allow input‑VAT recovery, whereas activities outside the scope of VAT do not. Hive contends that the reclassification therefore creates a substantial financial burden.

Legal Escalation

After Swedish courts declined to refer the matter to the Court of Justice of the European Union, Hive has escalated the dispute to the European Commission. The company alleges that the courts have not provided reasons for the refusal and that such refusals are becoming systematic in tax litigation.

Potential Regional Impact

If the European Commission decides to investigate, the case could set a precedent for how VAT is applied to crypto‑mining and related compute‑power services across the EU. Conversely, the Commission could close the complaint without further action.

Broader Context

The dispute arises amid broader discussions in Sweden about the role of Bitcoin in the national economy, including inquiries about adding Bitcoin to foreign reserves.