Bitcoin regulation and taxation remains a focal point for governments and digital currency enthusiasts worldwide. With so many countries still on the fence on how they should handle this disruptive alternative currency, it is difficult to predict how everything will play out in the end. But if you live in Switzerland, you can rest assured, as there will be no VAT to pay on Bitcoin for now.
The State of New York’s tax authorities have announced that there will be no VAT on the purchase of Bitcoins. In a memorandum on December 5th they stated that since Bitcoin is considered as an ”intangible asset”, no VAT is payable on its purchase. However, if the crypto currency is used to purchase a product or service, VAT is due on this product and/or service.
The memorandum also stated that making a purchase with Bitcoin or other crypto currencies, is considered as a barter transaction by the tax authorities. At the time of the purchase VAT is due on the product’s value in dollar.
It looks like Bitcoin keeps making waves of progression in The Netherlands. Not only do they have amazing project such as Arnhem Bitcoinstad, which could soon be followed by Amsterdam Bitcoinstad , but it looks like Bitcoin will not be taxable, according to a Ministry of Finance representative.
DISCLAIMER : Before you get your hopes up too high, none of the following has been made official just yet. All of these statements and all the information is coming from a Ministry of Finance representative taking part in a Bitcoin debate at the Free University of Amsterdam on November 20th 2014.
When browsing on the internet we discovered an article about Bitcoin and Belgium. This is on itself pretty rare. When reading multiple articles on “digital currency isn’t taxable in Belgium yet” the tone is overly enthusiastic. We would caution all of you to be too enthusiastic about it and we will have to correct some conclusions that the other news sites have drawn. Mainly because other news sites do not know Belgium and the current situation as well as someone who is living in Belgium and has decades of experience dealing with the Belgian government and doing research in Belgium.