Are your Bank transactions taxed VAT per transaction?

[Kakmakr]

The Banks in my country adds VAT to their Banking fees for every transaction you make. So I am not just paying the Banks to use my own money, I am paying the government too for the same transaction.

Yes, some Banks give you a small amount of transactions for free (Depending on the type of account), but once that limit is exceeded, you start to pay Banking fees for every transaction.

So Banks and Governments are making millions on fees that we have to pay, to use our own money!

Is this not one of the reasons why governments wants to stop Bitcoin and also the leverage Banks have over governments, if they lose the VAT on those transactions?

Please share your information on the way that governments and Banks are charging you to use your own money. How much is your VAT on those transactions and if you know that VAT is being paid as part of your fees?

[1714111825]

1714111825

[1714111825]

1714111825

[1714111825]

1714111825

[1714111825]

1714111825

[1Referee]

If we're purely focusing on transaction within the country, doesn't matter to what entity, and how often you transact, it's completely free and comes with buyers protection. SEPA transactions don't cost me a penny either, regardless of how many transactions going back and forth.

Transfers to countries outside the SEPA zone will come at a fee that ranges from €5 to €100 depending on the country and the amount. As far as I know, every financial service in the middle will scoop up a chunk of this fee, and there for me isn't any sort of tax involved, unless it's priced in already, which could very well be the case.

This package costs me €2.50 on a monthly basis, which is great value for money if you ask me.

[dothebeats]

Within the country, I don't see any substantial or intrusive fees within my banking ventures and transactions, so there's that--however, they are charging $0.26/withdrawal no matter the amount, which is fine by me as I rarely withdraw cash from my account. International wire transfer fees ranges from $25 - $100, depending on the amount, and this is understandable knowing that there are several banking networks that need some form of inter-connectivity with each other to process payments and fees usually go to that middleman. Anyway, there are also maintenance fees that the bank collects every quarter, and even if your account is idle, they'd still take $5 from your account to cover up for the said costs. This gets a huge chunk of money for the banks, and I think that is where they get most of their profits from, knowing how many people are signed up with them. All profits usually go the banks, at least here in the Philippines.

[Tstar]

It's completely country to country depending. Some add VAT, others not. Check your local laws and regulations.

Another example is SEPA. In Western EU countries costs <1 EURO, in Eastern EU counties it could cost up to 30! EURO. Also, some banks are charging for incoming transfers too.

[3core]

Yes, In my country all Bank Transactions are taxed VAT per transaction. This was recently done after an update in the banking policies which was enforced by the Central bank of the country.

[Kakmakr]

Yes, In my country all Bank Transactions are taxed VAT per transaction. This was recently done after an update in the banking policies which was enforced by the Central bank of the country.

So this means that Banks and Governments are losing income, when people use other currencies. They will have to find a way to tax Bitcoin transactions to make up for this loss in tax revenue, if they want to allow Bitcoin as a currency.

Just to make clear, I am not referring to normal transactions between customers and merchants, but rather transactions within the Banking system. <On your monthly detailed account, you will see the total VAT charged on your account> 

Can you imagine the income for the government if every person makes 10 transactions per month and you live in a country like China with more than 1,386 billion people. 

[davis196]

The Banks in my country adds VAT to their Banking fees for every transaction you make. So I am not just paying the Banks to use my own money, I am paying the government too for the same transaction.

Yes, some Banks give you a small amount of transactions for free (Depending on the type of account), but once that limit is exceeded, you start to pay Banking fees for every transaction.

So Banks and Governments are making millions on fees that we have to pay, to use our own money!

Is this not one of the reasons why governments wants to stop Bitcoin and also the leverage Banks have over governments, if they lose the VAT on those transactions?

Please share your information on the way that governments and Banks are charging you to use your own money. How much is your VAT on those transactions and if you know that VAT is being paid as part of your fees?

What?The VAT rate in my country is 20% and if they tax every transaction with 20% I would definitely stop using any banking services.VAT is used only to taxate goods and services.
The transactions fees of the bank I'm currently using aren't that horrible and there's a 1 euro monthly bank account maintenance fee.

[Lumi3004]

In my country PPH and VAT are one of the obligations at a transaction at the Bank, both local and national, depending on the budget drawn, and similar to crypto transactions such as the VIP market, each recipient must have a discount, VAT, even though my country is not yet in valid likeother countries.

[poptok1]

What?The VAT rate in my country is 20% and if they tax every transaction with 20% I would definitely stop using any banking services.VAT is used only to taxate goods and services.
The transactions fees of the bank I'm currently using aren't that horrible and there's a 1 euro monthly bank account maintenance fee.

It is not 20% of the sum you are transferring, that would be to obvious of a theft. No one would cope with that.
It is 20 percent of the the amount the bank it charging you. So basically the state is "stealing" from banks, of that what they steal from you... madness nevertheless. It won't take long till this fancy extortion system of theirs is going to collapse under its own fake weight.
It was designed to fall, that's just another system of control. I'm doing what I can to avoid interaction with banks but its sometimes impossible, state-private bank cooperation, fraternisation and entanglement went to far.

[avikz]

The Banks in my country adds VAT to their Banking fees for every transaction you make. So I am not just paying the Banks to use my own money, I am paying the government too for the same transaction.

For my country as well, Banks charge a tax for each transaction. But this is a fees they charge you for using their technology platform, they way you use bitcoin wallet. The difference is that, in bank you pay both to Bank and Government and in bitcoin, you pay the bitcoin network.

So Banks and Governments are making millions on fees that we have to pay, to use our own money!

Is this not one of the reasons why governments wants to stop Bitcoin and also the leverage Banks have over governments, if they lose the VAT on those transactions?

Please share your information on the way that governments and Banks are charging you to use your own money. How much is your VAT on those transactions and if you know that VAT is being paid as part of your fees?

I don't think this is the only reason why Banks and Governments want to stop bitcoin and other cryptos. This may be one of the reasons because even Banks know that if a majority of the people move to bitcoin, their business will take a hit because they won't be able to gather enough money deposit from the public to further lend it to the market. This lending business is the main business of the banks and their main earning is the different in interest rates.

However, there are more serious concerns to the governments about cryptos, like terrorism funding. Please read the below thread and the link given in it,

https://bitcointalk.org/index.php?topic=5106291.0

This is a real threat!

[horrifiedx1]

wow ... it's different in my country, for every other bank transfer transaction there are only a few administrative fees. and is not subject to VAT fees, because this is already a different domain. the bank only takes administration every month, and I don't think it is big, even for the transfer of fellow banks, there is no charge

[Naida_BR]

The Banks in my country adds VAT to their Banking fees for every transaction you make. So I am not just paying the Banks to use my own money, I am paying the government too for the same transaction.

Yes, some Banks give you a small amount of transactions for free (Depending on the type of account), but once that limit is exceeded, you start to pay Banking fees for every transaction.

So Banks and Governments are making millions on fees that we have to pay, to use our own money!

Is this not one of the reasons why governments wants to stop Bitcoin and also the leverage Banks have over governments, if they lose the VAT on those transactions?

Please share your information on the way that governments and Banks are charging you to use your own money. How much is your VAT on those transactions and if you know that VAT is being paid as part of your fees?

This is something that I read for the first time.

In my country, the bank doesn't add VAT fee for every transaction. They just add the Bank fee which is their profit from using their services. Every fee that is included in the transaction goes to the bank and not in the state. I think it would be better to be a government profit and not a bank profit that boosts the vicious cycle of the economy even more.

[kryptqnick]

The Banks in my country adds VAT to their Banking fees for every transaction you make. So I am not just paying the Banks to use my own money, I am paying the government too for the same transaction.

My goodness, this sounds so unfair! Fortunately, in my country banks are actually pretty cool. VAT is a part of the prices for products and services, but for for transactions. Having a debit card of the most popular bank in the country with money being in local currency, I pay like $1 per month for maintenance and nothing if I am paying with it in supermarkets or online. Moreover, I can use it in other countries and the prices get automatically converted at reasonable rate. No taxes and low fees. Fees are usually significant for withdrawing the money (around 3%), transferring money to other accounts (up to 5%, but usually lower) or when using iBox or similar machine to add money on the card (here the fees get crazy, you can end up paying around 10% for the operation).

[audaciousbeing]

The Banks in my country adds VAT to their Banking fees for every transaction you make. So I am not just paying the Banks to use my own money, I am paying the government too for the same transaction.

Yes, some Banks give you a small amount of transactions for free (Depending on the type of account), but once that limit is exceeded, you start to pay Banking fees for every transaction.

So Banks and Governments are making millions on fees that we have to pay, to use our own money!

Is this not one of the reasons why governments wants to stop Bitcoin and also the leverage Banks have over governments, if they lose the VAT on those transactions?

Please share your information on the way that governments and Banks are charging you to use your own money. How much is your VAT on those transactions and if you know that VAT is being paid as part of your fees?

I think its a general practice all over the world and its always mandated by government and its authorities that they charge this fee on the end users. The banks sometimes because of their own capitalist motive of making profit by all means would continue to charge customers ridiculous fees and the moment they do that, they are under the mandate of the law to charge VAT as well.

I have to make several requests from the bank and I get charged. To get the hard copy of your statement, to request for ATM cards, making transfers from one account to another, requesting for reference letters, getting a loan approved and payment of management fees, transferring beyond certain limits, you will pay and when you do that, just know you are also paying government its own portion.

[BitHodler]

I am not getting charged any fees for using my debit card, which includes internet banking. I would however get charged for utilizing the credit side of it, which is purely optional, but I don't use it so it doesn't cost me anything.

I feel bad for people who do use credit, because the interest rate of the debt is 1.5% for the first month, then becomes a whopping ~20% on a monthly basis. It's pure extortion, but then again, no one forces you to use it.

Withdrawing credit from an ATM comes at a basic €5 fee. I guess that the reason for the debit card itself to not cost anything is that they hope you borrow money and this will be their income from there.

[sheenshane]

If you had the transaction within the country then there would be no charges the bank will ask you.  Substantial fees and intrusive fees were not asked.  It's only the withdrawal charge they are trying to ask you. But if you will have a transaction for international enterprises then that is the time you will be charged for just a very small fee. It won't even hurt you.

For me, the government and the banks are trying to stop bitcoin because of the point that the people would stop availing their services as a bank if they can have their own wallets using the digital currency. Bitcoin is one of the best digital assets in the world. The solution for this
is for the bank to adopt the blockchain technology and benefit from it, as well.

[marcbitcoins]

Fortunately, here in my country the Value added tax is only applicable to the products that are consumable like food and beverage. Services like in the bank are free of taxes so i guess VAT application to bank will depend of which country you belong in which the banks will oblige to follow the government financial policies.

[wahyu wida]

Fortunately, here in my country the Value added tax is only applicable to the products that are consumable like food and beverage. Services like in the bank are free of taxes so i guess VAT application to bank will depend of which country you belong in which the banks will oblige to follow the government financial policies.

same as in my country, where there are only transaction fees, and it's a small digologist. but these costs are not value added taxes. there is not even a fee if we transfer to the same bank

[Kakmakr]

I think most of the VAT is on withdrawals, so they want to force you to use your credit card and debit card to make payments. They are gently pushing people to use less cash. <It is obviously better for them, because cash management is expensive and more risky for them>

Governments will support them, because cash gives people financial anonymity, Banks cannot track all transactions and report it to these governments. So it is a WIN/WIN for both of them. 

We pay more for transactions, they pay less to secure the cash and to handle it and they make more profits. 

[upsidedown75]

In my country the tax is always added on top of the thing you buy, so you do not pay any extra taxes because you pay the price that is with taxes, hence we do not have like "10+tax" type of pricing, if something is a certain price then we pay that certain price and nothing more.

Talking about banks, they do take out a certain amount for sending to different bank but not to their bank, so it works out a bit weird, if I am spending money or sending money doesn't matter if its the same bank then its free but if its different you pay about 1 dollar or so for it, it doesn't change according to the price, like it could be something 100 dollars or 10000 dollars , they just take out 1 dollar no matter what the amount you spend is. That is why I try to not really ignore it but also not really care about it too much neither.