Japan Might Remove Bitcoin Tax
Japan might remove its 8 percent sales tax on bitcoin and other virtual currency transactions, according to reports.
The plan stems from the country’s Ministry of Finance and the Financial Services Agency, according to an Oct. 14 report in Japan Today. It said regulators intend to study the issue via a committee; among the questions is what constitutes a virtual currency.
Any new rule could come into effect by June 2017, the report said.
Last year, the European Court of Justice effectively classified bitcoin as a type of currency, rather than “tangible property,” the purchase of which is subject to consumption tax. Under EU law, the exchange of one type of currency for another is exempt from VAT tax. The case originated in Sweden, where the operator of a bitcoin exchange earlier this year requested a preliminary decision from the Swedish Revenue Law Commission on whether VAT must be paid on purchases of bitcoin.
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