I have a friend that owns a fairly small scale webshop dealing in hardware. ....
What we couldn't figure out though was what the law on taxes would be.
What we couldn't figure out though was what the law on taxes would be.
Definitely consult a tax lawyer. Don't let him charge you for YOUR time when he asks you, what the blazes is Bitcoin? and then you have to explain
You might have to keep two sets of books, after a fashion. All the transactions done in BTC with your customers, then converted to local currency (probably as fast as possible after the transaction). That way everything is straightforward for VAT calculations, if indeed the tax lawyer tells you that you've gotta pay up.
Is there any possibility you could operate from a Free Trade Zone? Eh, but that wouldn't solve anything because you'd still have to figure out import taxes for sales to local buyers. Yeah, you need a tax lawyer.