Quote from: Sterlingcoin on September 06, 2014, 08:10:28 PM

Quote from: Skydog on September 06, 2014, 08:04:02 PM

Quote from: Skydog on September 06, 2014, 08:03:23 PM

Quote from: Sterlingcoin on September 06, 2014, 03:49:00 PM

For VAT purposes Bitcoin and similar cryptocurrencies will be treated as follows below, this in no way reflects on how they are treated for regulatory or other purposes:

1.Income received from Bitcoin mining activities will generally be outside the scope of VAT on the basis that the activity does not constitute an economic activity for VAT purposes because there is an insufficient link between any services provided and any consideration received.

2.Income received by miners for other activities, such as for the provision of services in connection with the verification of specific transactions for which specific charges are made, will be exempt from VAT under Article 135(1)(d) of the EU VAT Directive as falling within the definition of 'transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments.'

3. When Bitcoin is exchanged for Sterling or for foreign currencies, such as Euros or Dollars, no VAT will be due on the value of the Bitcoins themselves.

4. Charges (in whatever form) made over and above the value of the Bitcoin for arranging or carrying out any transactions in Bitcoin will be exempt from VAT under Article 135(1)(d) as outlined at 2 above.

For retail/goods/services:

However, in all instances, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for Bitcoin or other similar cryptocurrency. The value of the supply of goods or services on which VAT is due will be the sterling value of the cryptocurrency at the point the transaction takes place

Except that you have to still pay VAT when you go shooping you just can recieve it back when doing your tax declaration and good luck with that keeping all your billings and fighting the tax authorities over that. Oh not to forgot that it only works if you have mined the coin. And have fun with the nightmare if you dared to trade with the coin in the meantime.

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Your comments apply to all crypto currencies.

Other crypto currencies don't promote the coin byclaiming youcan escape the VAT.