Bitcoin’s Tax Status to be Reviewed by HMRC

Her Majesty’s Revenue and Customs has announced that it will consider alternatives to the current 20% VAT on purchases of Bitcoin, which at the moment is considered more as a voucher than a virtual currency. One of the options, involves following the German approach, which would classify Bitcoin as private money and would so limit the VAT on transactions.

This move has been motivated by concerns from the government that its citizens could use the cryptocurrency for tax evasion and money laundering and to address concerns from the tax authorities who want to generate revenues from the use of the coin.

Bill Dodwell from Deloitte, said about the commercial use of cryptocurrencies, “Many large businesses will be put off from accepting virtual currencies such as Bitcoins given the fringe nature of the industry and lack of transparency. That’s not to say that a cryptocurrency will not succeed in the future. HMRC clarifying its tax treatment will give more certainty to participants in the market and over the transactions taking place. This may boost confidence in cryptocurrencies and lead to wider adoption”.

Recent Posts

Professional investors skeptical about Bitcoin, a recent Bank of America survey says

Bank of America recently asked 200 professional investors with $533 billion in assets under management for their opinions on Bitcoin.…

1 day ago

AXA Switzerland now offers Bitcoin as a payment method

Insurance provider AXA Switzerland announced that its Switzerland customers will now be able to pay their bills in Bitcoin (BTC).…

1 day ago

DOGE “to the moon” as Robinhood faces more scrutiny

After yet another phenomenal rally surging 114% in the last 24 hours, Dogecoin (DOGE) hit an all-time high of $0.29.…

1 day ago

“Bitcoin’s peak volatility is right on track to drop below fiat volatility”

There will come a time that Bitcoin will be less volatile than fiat money as money is being redefined. And…

2 days ago

GoldMan Sachs watching Bitcoin’s every move

Goldman Sachs is keeping a close eye on Bitcoin. In an earnings call on Tuesday, the bank’s Chief Executive Officer,…

3 days ago

Coinbase’s COIN is Live on Nasdaq, while Bitcoin and Ethereum jumped to new all-time highs

After months of intense build-up towards their big day, Coinbase finally listed on the Nasdaq with ticker COIN. And the…

3 days ago