HM Revenue and Customs Changes Mind on Bitcoin VAT
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....
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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....
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HMRC has now published an official brief, outlining its position on the tax treatment of income derived from bitcoin-related activities. The UK's tax agency has reversed an earlier ruling that classified virtual currencies as gift vouchers, exempting digital currency trading from a 20% value added tax (VAT). HM Revenue and Customs (HMRC), the UK's customs and tax department, has classified virtual currencies as assets or private money, not as vouchers that required a tax on the value of the coins. Tom Robinson, co-founder of London-based digital currency storage specialist Elliptic and a....