Consumption tax on Cryptocurrency?

[Elena_Rodriguez]

It seems, there was 8% exemption of Japanese Consumption Tax (JCT) by the holders of Japanese cryptocurrency.
Is is true?


Source: Coinpedia.org News

[Amph]

bitcoin is exempt from taxes in many country only in america they regulate it and tax it like no tomorrow

australia also is exempting bitcoin from taxation https://cointelegraph.com/news/australia-will-recognize-bitcoin-as-money-and-protect-bitcoin-businesses-no-taxes

it must be said that we are talking about certain kind of tax like consumption tax, not every taxation, capital gain is still taxed...

[Proton2233]

bitcoin is exempt from taxes in many country only in america they regulate it and tax it like no tomorrow

australia also is exempting bitcoin from taxation https://cointelegraph.com/news/australia-will-recognize-bitcoin-as-money-and-protect-bitcoin-businesses-no-taxes

it must be said thta we are talking about certain kind of tax like consumption tax, not every taxation, capital gain is still taxed...

Tax on capital gains is most basic in monetary terms. The cancellation of the consumption tax that attempts by the state to attract investment in bitcoins and in fact the abolition of this tax will only increase the deductions in tax.

[NotFuzzyWarm]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

[Amph]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

i was talking about that when you cash out you are taxed, in other country you are not taxed even if you cash out, that what i mean with my post, some country don't tax capital gain if you don't go above certain threshold

i know that taxation on bitcoin directly is not true in any country, but i remember that in the USA they even tax that in some cases, otherwise someone that want to buy an house with bitcoin, can evade taxes...

[Mike Mayor]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

When you talk about sales tax do you mean the 14% VAT we pay when we buy things ? So if I use Bitcoin I pay VAT and hn I cash out to Fiat I pay income tax and VAT? So it's cheaper to use Bitcoin directly then cash out first ? What if I save my Bitcoin in my current country and cash out after I move ? Say from USA to Germany. So I pay German taxes since I cash out in Germany ?

Thanks for the help.

[Dazedconfused11]

Seems interesting I can't seem to find anything about it tho

[NotFuzzyWarm]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

When you talk about sales tax do you mean the 14% VAT we pay when we buy things ? So if I use Bitcoin I pay VAT and hn I cash out to Fiat I pay income tax and VAT? So it's cheaper to use Bitcoin directly then cash out first ? What if I save my Bitcoin in my current country and cash out after I move ? Say from USA to Germany. So I pay German taxes since I cash out in Germany ?

Thanks for the help.

In the USA yes a States sales tax is similar to VAT, but instead of a single country-wide tax like VAT is, here each state may or may not add the Sales tax onto purchases (a few states have no Sales tax). For example my state, Michigan, has Sales tax of 9%. Some things like food are exempt but on most sales the state wants their cut.

[Mike Mayor]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

When you talk about sales tax do you mean the 14% VAT we pay when we buy things ? So if I use Bitcoin I pay VAT and hn I cash out to Fiat I pay income tax and VAT? So it's cheaper to use Bitcoin directly then cash out first ? What if I save my Bitcoin in my current country and cash out after I move ? Say from USA to Germany. So I pay German taxes since I cash out in Germany ?

Thanks for the help.

In the USA ya VAT is similar to Sales tax each state may tack onto purchases (a few states have no Sales tax). For example my state, Michigan, has Sales tax of 9%. Some things like food are exempt but most on most sales the state wants their cut.

Oh ok thank you so much for your reply that is very interesting. Wow so 14% is high hey ?  Here everything has 14%tax they print it out on invoices when you shop. When you buy anything tax is added you can't get around it no matter how you pay. Unless it's a private seller or buyer or smaller shop. Bit bigger places have the vat.

[NickoN]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

I understood that if I buy bitcoin on coinbase for example and sale later at the higher price, I should pay U.S. federal income tax on the difference of capital gains. What about if I got bitcoins by mining, should the entire amount be taxed as an income tax? What if I transfer it to btc-e and cash it out there?

[Amph]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

I understood that if I buy bitcoin on coinbase for example and sale later at the higher price, I should pay U.S. federal income tax on the difference of capital gains. What about if I got bitcoins by mining, should the entire amount be taxed as an income tax? What if I transfer it to btc-e and cash it out there?

if you leave them in bitcoin when you mine them you are safe, but if you exchange them all you need to pay not capital gain, because you are not trading, but you need to declare them as your total income per year, and will be taxed as a business

still it's debatable if you really need to do so when running only 1 antminer s9 for example, or a single gpu for mining, i don't think that cover the "business activity", there must be a threshold in the USA above which your activity is considered a business

otherwise the kid with a single gpu playing call of duty while mining is doing a business activity, and i don't think that is right...

[reflector]

bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow

False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.

As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.

I understood that if I buy bitcoin on coinbase for example and sale later at the higher price, I should pay U.S. federal income tax on the difference of capital gains. What about if I got bitcoins by mining, should the entire amount be taxed as an income tax? What if I transfer it to btc-e and cash it out there?

if you leave them in bitcoin when you mine them you are safe, but if you exchange them all you need to pay not capital gain, because you ar enot trading, but you need to declare them as your total income per year, and will be taxed as a business

still it's debatable if you really need to do so when running only 1 antminer s9 for example, or a single gpu for mining, i don't think that cover the "business activity", there must be a threshold in the USA above which your activity is considered a business

otherwise the kid with a single gpu playing call of duty while mining is doing a business activity, and i don't think that is right...

Its true.why need to use the exchanges still. I will give the below official news link about it. Now it is around 8% after successive of it. They planned to increase the exemption to 10% in 2019.
https://news.bitcoin.com/japan-sale-bitcoin-exempt-consumption-tax/
It has been officially declared with their GST bill in the Government assembly.

[CryptoBry]

bitcoin is exempt from taxes in many country only in america they regulate it and tax it like no tomorrow

australia also is exempting bitcoin from taxation https://cointelegraph.com/news/australia-will-recognize-bitcoin-as-money-and-protect-bitcoin-businesses-no-taxes

it must be said that we are talking about certain kind of tax like consumption tax, not every taxation, capital gain is still taxed...

In my understanding it means to say that buying Bitcoin is free from tax or it is not considered to be like buying something that you consumed like foods, clothes and anything we use or utilized where many countries can be charging like VAT on top of the product price. However, when we sell Bitcoin and we gain something like a profit then that is where the government can be charging capital gain tax.

And this is just fair and square. Japan is right now implementing a system similar to what I am describing above. And we are hoping that many Asian countries would follow the leadership of Japan for Bitcoin and the blockchain technology.

[ss890]

bitcoin is exempt from taxes in many country only in america they regulate it and tax it like no tomorrow

australia also is exempting bitcoin from taxation https://cointelegraph.com/news/australia-will-recognize-bitcoin-as-money-and-protect-bitcoin-businesses-no-taxes

it must be said that we are talking about certain kind of tax like consumption tax, not every taxation, capital gain is still taxed...

Bitcoin does not really count in for capital gain as it is anonymous as long as it is in the form of coin. Yeah it is another thing that once the coins are converted to fiat and withdrawn to bank accounts they are noticed and questioned for where they come from. However there are still many countries currently who don't even recognise the crypto currency and do not ask for taxation. They are underdeveloped for the financial skeleton and still need to develop there own taxing system. Good for those who already got exempted from the taxes.

[cabinetmaker]

any profit is taxable.
I always pay taxes on my PROFITS from bitcoin, litecoin, cash, etc.

why not, it is basically free money. And I don't want uncle sam up my butt for taxes, in any form.
Just pay your taxe and move on.

if you got some exemption, then more power to you, and good going. You are ahead of the game.

[sobsitesearch]

Here in our country there is no imposed tax yet in earning of bitcoin since it is not yet fully adopted by the government some remittence center which we used for payout is the one who put some charges in every transactions we made. And it will good for us because our earnings was no deductions.

[Lieldoryn]

In order to tax bitcoin users the state should recognize bitcoin as currency, to open the public bitcoin wallet after all, no one has the right to force you to change the currency in which you received the income. This is not happening because the government is afraid of competition with bitcoin. So I think we will soon see taxes with bitcoin.

[joebrook]

It seems, there was 8% exemption of Japanese Consumption Tax (JCT) by the holders of Japanese cryptocurrency.
Is is true?


Source: Coinpedia.org News

There is no tax on the buying and selling of bitcoins in my country. I am sure because the government doesn't know anything about which is heartbreaking and i dont think there are any measures or sytem in place to allow the taxation of bitcoins unless the government becomes the sole seller and buyer of the bitcoin currency which i really done see happening.