[2017-04-01] Japan Declares Sale of Bitcoin Exempt from Consumption Tax

[tyz]

Japan Declares Sale of Bitcoin Exempt from Consumption Tax

March has been a busy month for Bitcoin in Japan. The country officially recognizes Bitcoin as a method of payment today. While Japan prepares to recognize the digital currency, its long-awaited tax reform bills have also been passed this week. One area the bills address is the consumption tax treatment of digital currencies including bitcoin.

The consumption tax is the tax levied on spending on goods and services by the Consumption Tax Law, a municipal law in Japan. “This system can be considered Japan Declares Sale of Bitcoin Exempt from Consumption Taxas similar to the VAT (value-added tax), GST (goods and services tax) or sales tax”, describes Kyoto City Official Travel Guide website.

https://news.bitcoin.com/japan-sale-bitcoin-exempt-consumption-tax/

[renfangfua]

Of course, they should drop the consumption tax on Bitcoin, it’s a digital currency. It is also not capital or wealth so it should not be subject to capital gains either. It is only a representation or symbol of wealth, as is all money today. Money has become merely a method of accounting. If it becomes recognized by government as a “legal tender” it will also be subject to the income tax as income, the most vile form of tax.