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.
The Spanish tax authorities have published a statement classifying bitcoin; Some of the UK's top bankers are to discuss bitcoin among a fintech discussion panel...
APR 20 DIGEST: Spain VAT Exempts Bitcoin, UK Bankers to Discuss Crypto at SWIFT Event
A reclassification of how Value Added Tax (VAT) is to be applied in the EU will force merchants to log user’s location, and make the user pay VAT twice.
New EU Tax Law Could Double Tax Bitcoin and Log Location Data
The nation of Finland has ruled that Bitcoin services will be exempt of Value Added Tax.
Finland at Odds with EU on VAT Exempts Status of Bitcoin Services
Avalara, a company that offers cloud-based tax-compliance software, has just announced it has added Bitcoin to the roster of currencies its platform can handle,...
Avalara Looks to Help BTC Businesses Comply With Sales Tax and VAT Rules