News for hackers. Stuff that matters.

A comment on Virtual currencies can be exchanged tax-free in Europe after court ruling. Parent comment

Re:Virtual currencies can be exchanged tax-free in Europe af... by modeless on Thursday October 22, 2015 @02:27PM (#10433949)
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.

[ Parent | on HN ]
Re:Virtual currencies can be exchanged tax-free in Europe af... by smtddr on Thursday October 22, 2015 @03:42PM (#10434516)
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?

[ Parent | on HN ]
Re:Virtual currencies can be exchanged tax-free in Europe af... by acaloiar on Thursday October 22, 2015 @03:50PM (#10434575)
> 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.

[ Parent | on HN ]
Re:Virtual currencies can be exchanged tax-free in Europe af... by stanleydrew on Thursday October 22, 2015 @04:36PM (#10434871)
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.
[ Parent | on HN ]
Re:Virtual currencies can be exchanged tax-free in Europe af... by Daviey on Thursday October 22, 2015 @05:11PM (#10435101)
Except Bananas are zero VAT rated, meaning no VAT is paid on them either. :)
[ Parent | on HN ]
Re:Virtual currencies can be exchanged tax-free in Europe af... by stanleydrew on Thursday October 22, 2015 @07:30PM (#10435883)
Heh, should have checked before I made the assumption.
[ Parent | on HN ]
Re:Virtual currencies can be exchanged tax-free in Europe af... by Analemma_ on Thursday October 22, 2015 @03:43PM (#10434525)
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.
[ Parent | on HN ]
Re:Virtual currencies can be exchanged tax-free in Europe af... by hackerboos on Thursday October 22, 2015 @06:01PM (#10435421)
Ontario still charges HST on Bitcoin exchanges

http://www.correntmacri.com/harmonized-sales-tax-due-sale-bi...

[ Parent | on HN ]