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January 17, 2014, 10:28:24 PM


You think this is good news ?

Quote
According to Richard Asquith, head of tax at investment advisers TMF Global, the reclassification of bitcoin to a private currency would mean owners would not be liable for capital gains tax, and although VAT would still apply, it would only be incurred when trading on an exchange, not when buying goods.

VAT (known as sales tax in some countries) in the UK is 20% at the moment, if it's charged on exchange transactions that means a 20% price premium to those who are not VAT registered businesses.


no capital gains tax is very good.

vat in germany is not an issue, since you also pay no vat when buying gold or dollars. but when you pay stuff with btc, you still have to pay the vat that is on the item. using btc will not prevent you from paying vat for the item itself. i doubt it very much thatthere will be vat on btc itself. there was much confusion about this topic in germany also, but it is all clear now: no extra vat on btc purchases. i bet this will be the same in the uk. donīt spread FUD.