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My parent was specifically asking about capital gains tax or whether this just applies to vat. The article is a little vague as to whether this makes bitcoin a
by benj111 7y ago
My parent was specifically asking about capital gains tax or whether this just applies to vat.
The article is a little vague as to whether this makes bitcoin a magic tax free vehicle, it isn't, it just doesn't attract extra taxes.
Your capital gains taxable transaction doesn't become tax free, because 'bitcoin', is all I'm saying.
- gamblor956 7y agoThe article is simply wrong and is conflating 2 separate rulings. The ruling at issue actually just says that VAT doesn't apply to crypto-crypto trades, like other securities-type trades. VAT still applies to transactions conducted in crypto, i.e., crypto in exchange for a burger. I don't understand your capital gains comment. Crypto are not capital assets and so can't give rise to capital gains when traded. Exchanging a capital asset for crypto would give rise to capital gains, but the reverse is not true (you are constructively treated as exchanging the crypto for cash, which is non-taxable in Portugal unless part of a crypto business, and then exchanging that imaginary cash for the asset).
- benj111 7y ago"I don't understand your capital gains comment" I mean this ruling doesn't strip all tax liability from everything bitcoin touches. It is just about Vat not being due in fairly limited circumstances. I don't think we are in disagreement here.