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Re: VAT on BTC exchange
by
galaxyAbstractor
on 21/05/2011, 10:18:26 UTC
Anybody have an ideas of the VAT situation in UK/EU of BTC to GBP and vice versa?

I will ask the company's tax advisor if I went into it, but just wondering what the view of others are before, as I expect he will look blankly at me for a while...

My gut feeling is that exchanging GBP for BTP is selling (you give me money and I give you BTC codes), so VAT should be paid with VAT receipt. Buying BTC of UK/EU businesses would mean that have to charge VAT and provide a VAT receipt.

Any thoughts?

I don't know how it is in the UK, but here in Sweden, you don't have to pay VAT if you are selling something between persons, unless the trade exceeds 50000 SEK (£4800). That's what the Swedish IRS office told me when I asked how and if I should pay VAT on stuff I sell on ebay-like sites. If it's from a company though, I am unsure, but I would guess that could be counted as taxable (I don't know how much though, it's 25% in Sweden), but it's better to wait for someone more knowledgeable to reply :>