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Title: hypothetical question BTC and import duty Post by: stryker on July 24, 2014, 07:39:26 PM Here is an interesting question.
Lets say I bought something from a foreign country and I paid in BTC.... simples, I paid btc the supplier accepted btc, no conversions to fiat just btc. If the supplier declared the value of the goods in BTC and lets say my country's customs and excise duty is 20%. Is there a valid case where I'd only offer payment in btc? which would be 0.2btc? Is it my problem if the government says the actual real goods I bought were paid for with "pretend" money? The supplier didn't think so. Curious as to the answers from others who undoubtedly know more than me! :) Title: Re: hypothetical question BTC and import duty Post by: chennan on July 24, 2014, 10:21:48 PM No,they wouldn't say that. They haven't got any precedent and wallet to receive BTC payment. They will tax you based on the weight and the category of taxation rule.
Title: Re: hypothetical question BTC and import duty Post by: Connor936 on July 25, 2014, 12:36:22 AM The duty is usually paid for in terms of the local currency.
Title: Re: hypothetical question BTC and import duty Post by: polynesia on July 25, 2014, 01:41:59 AM Think about buying an item in foreign currency.
You still have to pay taxes/duties in the legal tender of your government. Buying in BTC should be no different. Title: Re: hypothetical question BTC and import duty Post by: stryker on July 25, 2014, 09:44:11 AM Interesting replies, thanks.
Some of the explanations above suggest paying say duty for goods brought abroad using bitcoin does not even help add to bitcoin legitimacy, if its true that you can pay duty on goods you got for free. Interesting stuff thanks. Title: Re: hypothetical question BTC and import duty Post by: michaelwang33 on July 26, 2014, 05:50:07 AM Import duty isn't calculated based on what you declared or what you paid, its based on what the thing you bought is actually worth. What qualifies if a duty is owed is where you purchased the item from and the value of the item that your purchased. Your method of payment does not affect the amount of duty. You could still be liable for import duty if you got the item for free, paying with BTC or declaring it in BTC doesn't really matter. You can declare whatever you like and if they don't check it you'll pay based on that but in the end its up to customs to decide what its worth and what you should pay. Declaring it in BTC won't change anything, you'll still need to pay your taxes with legal tender. Title: Re: hypothetical question BTC and import duty Post by: Justine on July 26, 2014, 05:54:39 AM Just ask your supplier to put a price tag using local currency,
Title: Re: hypothetical question BTC and import duty Post by: DhaniBoy on September 16, 2014, 08:00:27 AM I guess if it was an agreement between the seller and the buyer, in case the payment using bitcoin, it is for the purchase of the real stuff, no need for a tax between buyers and sellers, there is only the possibility of a fee for the disbursement of bitcoin to an existing currency ... :o
Title: Re: hypothetical question BTC and import duty Post by: zorke on September 18, 2014, 05:11:29 AM Tariffs are generally only paid when items cross the boarder. The currency/method of payment really does not matter in most situations The amount due is almost always based on the local currency equivalent due at the time the product crosses the boarder
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