VAT (Value-Added Tax) is a tax assessed to compensate services and infrastructure that were used in production and distribution processes and were provided by the state. The VAT tax raises about a fifth of the total revenue provided by the taxing system in most countries where it is implemented. Currently, 166 countries employ a VAT. The United States replaced the VAT with a sales tax system. In the European Union (EU). the VAT is obligatory by the EU VAT directive and is implemented in every country of European Union. Most countries also use reduced rates for VAT in order to liberate certain industries and encourage their development. The uncertain position of cryptocurrency taxing has led to various tactics in taxation, and some of the countries have decided to tax Bitcoin under VAT regulations. However, this practice is currently rejected by some governments and replaced by a capital gains tax.
Here’s how today’s crypto taxation laws look like across the globe, from the U.S. to South Korea, Switzerland, Japan, Australia and Malta...
Crypto Taxation Around the Globe — What Do Regulations Look Like?
Georgia rules to exempt cryptocurrencies from value-added tax.
Georgia Exempts Cryptocurrencies From Value-Added Tax
Chilean taxpayers must report their cryptocurrency profits to the Chilean Internal Revenue Service, local media reports.
Chilean Taxpayers Must Report Cryptocurrency Profits to Chilean IRS: Local Media
On October 22, 2015, the European Court of Justice ruled that Bitcoin is a means of payment and its exchange is exempt from VAT in a landmark ruling.
A Lawyer’s Comment to the European Court of Justice Judgment on Bitcoin VAT exemption in Europe
The most popular Swedish news site, Dn.se, has reported the European Court of Justice as stating, “Bitcoin is a means of payment and that the exchange should th...
Bitcoin ‘Should Be Exempted from VAT’ Says European Court of Justice Official
The legal adviser to the EU's highest court said that digital currencies like Bitcoin should be exempt from value-added tax, the Factom Foundation has launched ...
JULY 17 DIGEST: Top EU Court Adviser Says Bitcoin Should be Exempt From VAT and Factom Launches First Release Candidate
A 17-year-old jihadist teenager faces up to 15 years in prison for posts about encryption and Bitcoin, Bitreserve has announced that it is dropping fees for cur...
JUNE 12 DIGEST: Jihadist US Teen Faces Prison for Tweets About Bitcoin, and Bitreserve Eliminates Fees For Currency Conversion