4 ms·

Does this mean that Bitcoin has a different tax status in the EU vs the US? If so, does this suggest future bitcoin growth will be favored in one or the other?

modeless 11y ago
No, this ruling is in line with how the US does it. Before, it was unclear whether the EU would charge sales tax (VAT) when you buy bitcoins on an exchange. Now it's clear that they won't. The US has never charged sales tax on bitcoin exchanges. Tax-free is an exaggeration, as bitcoin is still subject to capital gains tax, and of course you'll have to pay sales tax/VAT if you use bitcoin to buy things, just as if you bought the same things with euros or dollars.
- smtddr 11y ago
  Wait... then, what _IS_ tax-free about it? If I still have to pay capital gains tax and sales tax on it, then what's different about taxes in regards to bitcoin vs. government currency?
  - Analemma_ 11y ago
    Buying it, because now it's treated as an exchange of currency. There is now nothing different between Bitcoin and Euros as far as taxes go, which is as it should be.
    - deleted 11y ago
      [deleted]
  - acaloiar 11y ago
    > what's different about taxes in regards to bitcoin vs. government currency The difference is that Bitcoin is now recognized as a currency, and as such is not subject to VAT when one wishes to, for example, exchange Euros for Bitcoin. Previously, EU residents would pay VAT on such an exchange because Bitcoin were more or less recognized as a good or service, and thus subject to VAT.
  - stanleydrew 11y ago
    You don't "have to pay sales tax on it" when you buy BTC like you pay sales tax when you buy a banana. But you still have to pay sales tax when you purchase a banana with BTC.
    - Daviey 11y ago
      Except Bananas are zero VAT rated, meaning no VAT is paid on them either. :)
      - stanleydrew 11y ago
        Heh, should have checked before I made the assumption.
      - deleted 11y ago
        [deleted]
- hackerboos 11y ago
  Ontario still charges HST on Bitcoin exchanges http://www.correntmacri.com/harmonized-sales-tax-due-sale-bitcoins-sometimes/ http://www.correntmacri.com/harmonized-sales-tax-due-sale-bi...

modeless 11y ago

No, this ruling is in line with how the US does it. Before, it was unclear whether the EU would charge sales tax (VAT) when you buy bitcoins on an exchange. Now it's clear that they won't. The US has never charged sales tax on bitcoin exchanges. Tax-free is an exaggeration, as bitcoin is still subject to capital gains tax, and of course you'll have to pay sales tax/VAT if you use bitcoin to buy things, just as if you bought the same things with euros or dollars.

smtddr 11y ago
Wait... then, what _IS_ tax-free about it? If I still have to pay capital gains tax and sales tax on it, then what's different about taxes in regards to bitcoin vs. government currency?
- Analemma_ 11y ago
  Buying it, because now it's treated as an exchange of currency. There is now nothing different between Bitcoin and Euros as far as taxes go, which is as it should be.
  - deleted 11y ago
    [deleted]
- acaloiar 11y ago
  > what's different about taxes in regards to bitcoin vs. government currency The difference is that Bitcoin is now recognized as a currency, and as such is not subject to VAT when one wishes to, for example, exchange Euros for Bitcoin. Previously, EU residents would pay VAT on such an exchange because Bitcoin were more or less recognized as a good or service, and thus subject to VAT.
- stanleydrew 11y ago
  You don't "have to pay sales tax on it" when you buy BTC like you pay sales tax when you buy a banana. But you still have to pay sales tax when you purchase a banana with BTC.
  - Daviey 11y ago
    Except Bananas are zero VAT rated, meaning no VAT is paid on them either. :)
    - stanleydrew 11y ago
      Heh, should have checked before I made the assumption.
    - deleted 11y ago
      [deleted]
hackerboos 11y ago
Ontario still charges HST on Bitcoin exchanges http://www.correntmacri.com/harmonized-sales-tax-due-sale-bitcoins-sometimes/ http://www.correntmacri.com/harmonized-sales-tax-due-sale-bi...