Bitcoin in the UK: HMRC suggests bitcoins are 'taxable vouchers'
Bitcoin faces many hurdles before it may become an everyday currency. For businesses, one of these hurdles is the uncertainty surrounding its tax status. Across Europe, sales tax is known as Value Added Tax (VAT). When a nation begins to charge tax against bitcoin, many may interpret it as acceptance. However, it's possible that the application of VAT could serve to kill bitcoin too. Private money. When news broke earlier this year that Germany was regarding bitcoin as "private money", many rejoiced because it was the first time a European country had laid down any rules about bitcoin at....
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UK Bitcoin users no longer have to pay VAT on Bitcoin transactions. Until recently, the United Kingdom's HMRC (Her Majesty's Revenue and Customs) classified Bitcoins as a type of taxable voucher. This meant that Bitcoins were subject to VAT (Value Added Tax - a type of sales tax used across Europe). As a result, anyone selling Bitcoins in the UK would have to charge a 20% markup to cover the VAT, making UK Bitcoin exchanges extremely unattractive. However, Tom Robinson from BitPrice, entrepreneur Michael Parsons, Marc Warne from BittyLicious, and Eitan Jankelewitz from Sheridans met with....
The regular drumbeat of government warnings on bitcoin continues apace. Last month, Israel, Vietnam and Cyprus joined the chorus. However, in addition to this din (not entirely unwarranted many would argue) one government body has begun to undo its earlier mistakes in the bitcoin space. The body in question is the UK's tax authority, HMRC, which this month effectively recognised bitcoin as a currency after months of lobbying by London's bitcoin community, led by members of the soon-to-launch UK Digital Currency Association. But will HMRC's decision turn the UK into a leading centre for new....
Her Majesty's Revenue and Customs (HMRC) in the United Kingdom has decided to reconsider their previous stance of considering bitcoin as vouchers. Previously, the department had made the decision to classify bitcoin as vouchers, thus making VAT (value-added tax) applicable in transactions in the United Kingdom. But after a visit from prominent members of the bitcoin community (which includes an entrepreneur, CEO, and lawyer, the HMRC quite simply changed their minds after hearing what they had to say (which was generally aimed at educating HMRC on bitcoin's usage). "The general feeling I....
HM Revenue and Customs (HMRC - the UK customs and tax department) has backtracked on its previous classification of bitcoin. Last month, it was revealed that HMRC had decided to classify bitcoins as vouchers, which meant that VAT would be due on sales involving the digital currency. Today, members of the UK bitcoin scene visited HMRC today to speak with the government department about cryptocurrency. Tom Robinson from BitPrice, bitcoin entrepreneur Michael Parsons, Marc Warne from Bittylicious and Eitan Jankelewitz from Sheridans law firm were present at the meeting. Robinson said: "We....
Bitcoin exchanges operating in the UK do not have to register with HM Revenue & Customs (HMRC) under money laundering regulations, the government department has revealed. In a letter to Joel Dalais, director of soon-to-launch exchange FYB-UK, HMRC suggested it was keeping a close eye on bitcoin and said it may decide to change its stance in the future on how the digital currency is regulated. The letter from HMRC read as follows: "With reference to your enquiry at this time there is no requirement to register with HMRC under the Money Laundering regulations, however HMRC recognise that the....