Looking back @2021 #26: Cryptocurrencies – Will VAT take part of the gain?

ECJ

• Flashback on ECJ Cases C-264/14 (Hedqvist) – Buying and selling Bitcoin is exempt from VAT

Austria

• Mining and exchange of cryptocurrencies as a tax-exempt service

 Australia/Singapore

• Regulating a New Phenomenon: Examining the Legal Nature and Taxation of Cryptocurrencies in Australia and Singapore

 Canada

• Canada Cryptocurrency Crackdown Honing in on Sales Tax Evasion

China

• People’s Bank of China has reportedly declared all crypto currency payments illegal

Costa Rica

• Crypto Assets treated as Intangible Assets subject to VAT

El Salvador

• Bitcoin City: Can The Key To BTC Taxes Be VAT?
• El Salvador’s Bitcoin-City which would only collect one tax: VAT
• Legislation enacted making bitcoin legal currency in El Salvador

European Union

• EU expands reporting obligations under DAC7 and DAC8 for the digital economy and crypto assets
• EU to ban cryptocurrency anonymity in anti-money laundering plan
• Management Plan 2021 DG TAXATION AND CUSTOMS UNION
• Exchange of Information on Crypto-Assets at the Dawn of DAC8

Germany

• VAT treatment of services provided by stock exchanges and other trading platforms
• MOF expands VAT exemption for supplies provided by crypto exchange operators
• Federal Ministry of Finance on crypto exchanges: VAT exemption for cryptocurrency trading expanded

India

• India could levy GST on cryptocurrency exchanges
• Govt likely to classify cryptocurrency exchanges as e-commerce platforms; levy 1% GST
• India could levy GST on cryptocurrency exchanges
• Cryptos are likely to attract both income tax and GST
• Cryptocurrencies & GST
• Tax department exploring ways to impose GST on overseas cryptocurrency exchanges
• Overseas crypto exchanges may face 18% additional GST in India
• Taxation (GST and Income Tax) on Crypto currency like Bitcoin?
• Taxation of Crypto Currency Transactions
• GST Applicability on Cryptocurrency
• Decoding Cryptocurrency From GST Point Of View
• All About Cryptocurrency like Bitcoins
• Allow taxation on cryptocurrency, define as an asset, have FDI limits: Industry body’s proposal to government
• Cryptocurrency & Its Taxability: Crptocurrency is not Money, so it is covered under GST
• Taxation of Bitcoins
• A Loaded Question: Cryptocurrency Taxable under GST or Not
• GST applicable on services by crypto exchanges
• Bitcoin trading likely to attract 18% GST: Reports
• FinMin sees I-T, GST implications in the trade in crypto-currencies
• Bitcoins – Income Tax, GST & International Taxation Structure

Italy

• Extensive VAT exemption for bitcoin related transactions

Kazakhstan

• Crypto-currency: New a fee of one tenge per 1 kilowatt-hour (kW/h) for miners, starting on January 1, 2022

Netherlands

• Sale of ​​gold coins online games; no VAT exemption; no margin scheme
• 75% deduction of input tax for bitcoin mining
• Supreme Court waives a preliminary ruling on the right to deduct VAT for bitcoin mining
• Supreme Court does not answer preliminary questions about VAT deduction when mining bitcoins
• AG answers preliminary questions about VAT deductions for mining (of bitcoins) activities
• General statistical data evidence for bitcoin mining and bitcoin trading?
• Sale of ​​gold coins online games; no VAT exemption; no margin scheme
• Gold coins for computer role playing are not a means of payment that is exempt from VAT
• Runescape gold coins are not a virtual currency, so bitcoins are not subject to VAT exemption

New Zealand

• Tax rules are catching up with cryptoassets
• Proposal: Changes to GST tax invoice requirements, treatment of cryptoassets, domestic freight services, GST apportionment, …..
• New tax bill clarifies the GST treatment of cryptoassets
• Draft legislation proposes changes to GST (crypto, transport, apportionment method)
• Bill proposes to exclude digital assets from GST and 0% GST on domestic leg of international goods transport

Poland

• Making stock exchange transactions for the purchase and sale of bitcoins is not a business activity

Slovakia

• Crypto-assets vs. VAT: Assessment of transactions with crypto-assets from the point of view of VAT

Switzerland

• Blockchain: Favourable VAT treatment of asset transfers into a Swiss foundation

United Kingdom

• Cryptocurrency platforms potentially in scope of the UK DST
• VAT on goods exchanged for cryptocurrency
• Treatment of transactions involving cryptoassets. New guidance
• Cryptoassets for businesses: Value Added Tax

United States

• Wisconsin DOR Issues Guidance and Reminders on State Tax Treatment of Virtual Currency Transactions

World

• NFTs and VAT: the taxation of cryptoassets
• Cryptocurrency in the world of VAT, GST and sales tax
• Delegation of Tokens, Staking Rewards and VAT
• Hash function applied to electronic invoicing: securing fiscal digitization thanks to cryptography

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Check also the previous articles on ”Looking back @2021”

1. Brexit
2. E-Commerce VAT Directive launched in the EU per July 1, 2021
3. Next to the EU, 14 countries implemented VAT on E-Commerce, another 7 will implement in 2022
4. Saudi-Arabia is the first country in the Middle East launching E-Invoicing, UAE may follow
5. The concept of Fixed Establishments remains a major risk, and even why?
6. Intrastat: Major updates applicable as of Jan 1, 2022
7. Implementation/changes E-Invoicing & Real Time Reporting during 2021
8. ECJ cases decided in 2021 on ”Taxable Amount”

9. Increased focus on Fighting Climate Change – Carbon tax

10. 49 ECJ VAT Cases decided (incl. orders) in 2021
11. Split Payments
12. Poland and France to introduce optional taxation of Financial Services – Exemption may not longer be applied
13. Activities of the VAT Expert Group
14. ECJ cases decided in 2021 on ”Exemptions”
15. Pre-Filled VAT returns
16. SAF-T (or equivalent) regulations, some more countries will implement
17. Environmental Tax – Will Plastic Tax stop pollution?
18. VAT Grouping, a tool to avoid VAT leakage, optimize VAT receivables and simplify processes 
19. EU VAT Committee met twice and a proposal to transform it into comitology committee was discussed
20. ECJ cases decided in 2021 on ”Right to deduct VAT/Refund of VAT”
21. Global VAT rate changes, continuous monitoring needed
22. Global overview of future e-invoicing, e-filing, real time reporting, SAF-T – Will the Big Bang in Europe start as of 2022?
23. What happened in the Middle East?
24. Temporary reduction of VAT on Electricity and VAT incentives for Electric Cars
25. ECJ cases decided in 2021 on ”Taxable Persons & Related Cases”