European Union to Rule on Bitcoin VAT Today

eu-vat-bitcoin-rules-eu-court-bitcoin-european-union-taxes-value-added-taxGetting Bitcoin in the EU could change irrevocably today as the European Court of Justice Advocate General decides on whether to charge value-added tax on the sale of bitcoins or not.

While some individual countries such as the United Kingdom have already implemented a strategy regarding Bitcoin, exempting it from VAT and treating it as a foreign currency, the whole EU is subject to the rules being decided on today. The UK also permits businesses to accept any currency they like, although their VAT must be calculated properly in the local, national currency. In this scenario, rather than charge an extra fee when the Bitcoin is acquired, the government gets its share when the money is spent.

One of the competitive advantages of Bitcoin is the lower cost of remittance, an advantage that could be revoked today with the slam of a gavel. The case was kicked off when a Swedish entrepreneur, David Hedqvist, started looking into opening

Read more ... source: CryptoCoinsNews