Post
Topic
Board Economics
Re: Bitcoin classified as a currency. No VAT for BTC also in Switzerland.
by
bitart
on 06/11/2015, 20:36:16 UTC
Bitcoin is made to be a currency so why the hell does the government even have tax on it? It's not some kinds of product. It's money and the countries which abolish VAT for BTC are the ones which are not high right now
Because all governments currently tax own currency through inflation/money printing.  They might eventually want to do the same to bitcoin.  The only question is how and if it will succeed.
Putting tax on their own currency is quite easy but on a digital currency with non-government control? That's quite challenging
VAT can be applied for BTC transactions if it will be widely accepted at merchants. If you buy something you get an invoice (you need the invoice in some cases for warranty or whatever). If the merchant gives you the invoice it contains VAT. The merchant should pay the VAT to the government despite of the transaction's currency ( normal or digital), because the payment is income for him. It's the control that can not be applied to BTC because of the decentralized structure of it.