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I still have some doubts on Portugal’s stand as I stated a few posts above, and I’m not completely certain that the media has not misinterpreted the part for the total. The link I referenced above (
https://www.audico.pt/wp-content/uploads/2019/08/57_INFORMACAO_14436.pdf) talks about “IVA” (tax applied to purchase of goods), but I cannot (perhaps due to my limited capabilities to understand a document in Portuguese) see references to “IRS” (tax you pay based on your income).
Perhaps someone with good command of Portuguese could help clarify (@Bitmover?).
Hello,
I am not from Portugal, but I have a quite good understanding about taxes in Brazil.
What we call in Brazil and Portugual IVA is a kind of taxation called Value Added Tax.
From wikipedia:
VAT is a type of tax that is assessed incrementally. Like an income tax, it is based on the increase in value of a product or service at each stage of production or distribution.
Basically, it is a tax that is paid at each stage incrementally. Let´s suppose someone sell a tree. Then he pays tax. Then the guy who bought the tree cut it down and make some wood and sells the wood. At this point, to avoid double taxation, he pays only the taxes of the values added by their respective business practices. When the other guy transform the wood into the table he pays only a small difference again. This is basically what VAT (or IVA) is.
It is a smart form of taxation, because it avoids double taxation and tax evasion.
For traders, IVA taxation makes absolutely no sense IMO, only IRS.
However, for MINERS, IVA taxation makes sense, and this document is directed mostly to miners:
https://www.audico.pt/wp-content/uploads/2019/08/57_INFORMACAO_14436.pdfThere are some paragraphs where he talks about traders, defending that they should not pay IVA, but it says nothing about IRS, like in 13. 2.
2) O artigo 135.°, n.º 1, alínea e), da Diretiva 2006/112 deve ser interpretado no sentido de que prestações de serviços como as em causa no processo
principal, que consistem no câmbio de divisas tradicionais por unidades da divisa virtual «bitcoin», e vice versa, efetuadas mediante o pagamento de uma
quantia correspondente à margem constituída pela diferença entre, por um lado, o preço pelo qual o operador em causa compra as divisas e, por outro, o
preço a que as vende aos seus clientes, constituem operações isentas de imposto sobre o valor acrescentado, na aceção dessa disposição.
(free translation of bold part: The price which the operator buy, and on the other hand, the price which he sells to his customers, are operations VAT free)
This article is poorly written, as it was clearly written by someone who doesn't understand cryptocurrency very well. But it is directed to miners:
From those two documents, there is no proof that trading operations are IRS free in Portugal.Edit:
I found a more interesting document from 2016, which clearly states that selling cryptocurrency is tax free.