Italy Wants to Tax Speculative Bitcoin Use

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New documents suggest Italy’s top tax office is treating bitcoin as a form of currency.

Agenzia della Entrate, Italy’s top tax authority, released new information this month about its treatment of digital currencies, a publication that comes months after an EU court ruling regarding how value-added tax (VAT) would apply to transactions executed using the technology.

According to the Agenzia della Entrate, purchases and sales made with bitcoin remain exempt from VAT – a decision that mirrors a decision by the European Court of Justice (ECJ) last October. However, Italian tax officials, the documents show, are applying income tax to speculative uses of bitcoin, or events in which money is made during a sale or purchase.

The agency published the ruling in response to a request by a business in Italy, the name of which wasn’t disclosed. Those buying bitcoins outside of the scope of speculative activity, it indicates, aren’t required to pay income tax.

In doing so, the Agenzia Entrate appears to be treating bitcoin as a form of currency, a move that is the latest turn regarding bitcoin taxation worldwide.

While the ruling largely brings Italy in line with the decision set by the ECJ, it further

Read more ... source: TheBitcoinNews

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