[2018-05-17] Thailand Waives 7% VAT for Individual Cryptocurrency Investors

[limek]

Thailand’s Revenue Department has announced that it will waive the 7% value-added tax for individual cryptocurrency investors. The country began regulating digital currencies and initial coin offerings on Monday, putting the Thai Securities and Exchange Commission (SEC) in charge of the regulations.

VAT Exemption

The decree to provide the legal framework for cryptocurrencies and initial coin offerings (ICOs) in Thailand went into effect on Monday.

Cryptocurrency transactions are currently subject to income tax for both private companies and individual investors, Nation Multimedia explained. Saroch Thongpracum, Director of Legal Affairs of the country’s Revenue Department, announced at a press conference on Tuesday:

        "The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC)."

Read more: https://news.bitcoin.com/thailand-waves-vat-cryptocurrency-investors/

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[1714582886]

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1714582886

[Kakmakr]

Thailand’s Revenue Department has announced that it will waive the 7% value-added tax for individual cryptocurrency investors. The country began regulating digital currencies and initial coin offerings on Monday, putting the Thai Securities and Exchange Commission (SEC) in charge of the regulations.

VAT Exemption

The decree to provide the legal framework for cryptocurrencies and initial coin offerings (ICOs) in Thailand went into effect on Monday.

Cryptocurrency transactions are currently subject to income tax for both private companies and individual investors, Nation Multimedia explained. Saroch Thongpracum, Director of Legal Affairs of the country’s Revenue Department, announced at a press conference on Tuesday:

        "The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC)."

Read more: https://news.bitcoin.com/thailand-waves-vat-cryptocurrency-investors/

So how are they going to tax it then? In most countries they define Bitcoin as a commodity when it is traded on exchanges, so the traders have to pay Capital Gain taxes on their profits. VAT is supposed to be charged, when Bitcoin is used as a currency.

In the end it comes down to the use case. If you use it as a currency, then you pay VAT and when you trade with it and you make a profit, then you pay Capital gains on the profit.

[jjacob]

So how are they going to tax it then? In most countries they define Bitcoin as a commodity when it is traded on exchanges, so the traders have to pay Capital Gain taxes on their profits. VAT is supposed to be charged, when Bitcoin is used as a currency.

In the end it comes down to the use case. If you use it as a currency, then you pay VAT and when you trade with it and you make a profit, then you pay Capital gains on the profit.

I don’t thing any country charges VAT on currency transactions. If you think about it, what is the value you are adding by buying and selling currencies? Exchanges which charge a fee or commission may have to pay VAT, but not individual traders. Traders would be liable for capital gains tax.