Great news everyone. I just got confirmation from the Icelandic tax that cryptocurrencies like Auroracoin and Bitcoin are exemt from VAT in Iceland.
that is great news! but to what extent? buying and selling the currency only? or all trade made with the currency?
Do you really think all of a sudden there would be no Value Added Tax on goods any more just because you pay them with crypto? That's unthinkable. There's even VAT on goods even if you pay them with other goods: you have to value them in FIAT and then pay the VAT.
It's good to see Icelandic officials have confirmed in writing that there's no VAT on crypto. Congrats on getting that commitment.