Does Paypal charge VAT when Norwegians deposit money? If not, then Bitcoin must be treated the same.
If you read Paypals Legal Agreements you will see that a Paypal balance is not a Euro or a Krona. It is an electronic money issued by Paypal
Funding an account
To fund an account, a User must either:
Purchase electronic money from us via their funding source(s). In practice, this means that each time a User requests PayPal to send money, PayPal simultaneously debits the chosen amount from the User’s default funding source (PayPal balance, bank account, debit card or credit card). PayPal then sends this online payment to the intended recipient; or
Accept an online payment that has been issued by us and sent from another PayPal User
A User’s account balance represents the amount of electronic money issued by us (whether it is sent to the User by a third party or purchased directly from us)
Withdrawing funds (redeeming electronic money)
A User with an account that has a credit balance may instruct us at any time to withdraw funds from their account. By doing so, a User can redeem all or part of the electronic money represented by that balance to their registered bank account or if applicable, credit card.
This text can be found if you go to Paypal.ie click on Legal Agreements, "Key Payment and Service Information". I understand that Norway is not in European Union, but surely the legal status of the Paypal service in Norway must be the same?
