Post
Topic
Board Legal
Re: Does a Business selling Bitcoin charge VAT? (I'm not talking about Tax, CGT,etc)
by
audaciousbeing
on 18/06/2018, 14:14:16 UTC
So hypothetically, say I have accumulated over the year 1000 BTC as a business owner. The BTC was bought with business money so its purely owned by the business (No need to get into personal tax issues). I then as the business owner decided to sell some BTC to customers through the business. Do i have to charge a rate of Vat on top of the amount I'm selling to the customer?


VAT in itself means Value Added Tax and this is mostly applicable to companies in the manufacturing sector, packaging businesses, and service businesses who add one value or the other. Aside the government specifically mentioned or the existing law in various jurisdictions are amended to include the sale of crypto currencies, the question you need to ask is "what value are you adding to your crypto currencies acquired over the years and now selling?" If you don't have a valid answer to that, then I don't think you are liable to pay tax.

However, not all businesses in the above category are liable to VAT as some businesses are specifically exempted from paying VAT which I believe sale of crypto would be included in the future because I have not seen companies selling fiat currencies charging VAT.