[2019-07-10] Singapore to Exempt Bitcoin from Goods and Services Tax

[Jgilpulg]

Several countries, such as Japan and Switzerland, are already taking action to boost the growth of their crypto industry. In contrast, U.S. tax authorities seem to be aiming to stifle the nascent crypto industry with stricter controls.

https://bitcoinist.com/singapore-to-exempt-bitcoin-from-goods-and-services-tax/

[1714472030]

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[Lucius]

I can only say that this is the only move that makes sense, because it is insane that you need pay extra VAT in case payment is done with crypto what is the case now. Changing the law will certainly have a positive impact on people who want to spend bitcoins in Singapore, and it would be great that USA is make such a change.

There is link in posted article which say that some lawmakers push IRS to update their guidance which is 5 years old, and that this will happen in a few weeks. I am not sure is this VAT tax something IRS will be considered ( full article requires subscription / sign in), but it would be interesting to see a positive change of law, and what impact would this have on the US&world market.

[lucho1592]

Several countries, such as Japan and Switzerland, are already taking action to boost the growth of their crypto industry. In contrast, U.S. tax authorities seem to be aiming to stifle the nascent crypto industry with stricter controls.

https[Suspicious link removed]mpt-bitcoin-from-goods-and-services-tax/

Because Switzerland and Japan understand that this can stimulate their economy, but the us government again makes mistakes, and these mistakes can eventually lead to an economic crisis in the country

[roosbit]

This is something that is more likely to stimulate demand of crypto and am hoping more countries make it tax exempt

Several countries, such as Japan and Switzerland, are already taking action to boost the growth of their crypto industry. In contrast, U.S. tax authorities seem to be aiming to stifle the nascent crypto industry with stricter controls.

https[Suspicious link removed]mpt-bitcoin-from-goods-and-services-tax/

Because Switzerland and Japan understand that this can stimulate their economy, but the us government again makes mistakes, and these mistakes can eventually lead to an economic crisis in the country

Totally agree, and at this juncture the US are now trying to play catchup to have the same economic benefit as others using these cryptocurrencies...maybe the reason we are now getting news of the regulators having another review of how crypto is treated to stimulate it's use(win-win for the US).

[timerland]

Several countries, such as Japan and Switzerland, are already taking action to boost the growth of their crypto industry. In contrast, U.S. tax authorities seem to be aiming to stifle the nascent crypto industry with stricter controls.

https://bitcoinist.com/singapore-to-exempt-bitcoin-from-goods-and-services-tax/

I remember Australia doing this several years back as well, alongside Japan. I believe that removal of these draconian tax standards is absolutely necessary if a country wants to move forward in terms of financial innovation.

Why do I call it draconian? Because essentially, a GST/VAT or whatever you call it is a double taxing. If you are treating BTC as a good, then shouldn't there be no capital gains tax charged? Yet, many countries used to and still have this double taxing standard, which essentially drives out legitimate individuals and businesses from participating in the regulated market.

Singapore's move is a good one. It's protecting the rights of the investors while boosting their status as a nation which welcomes FinTech, which can attract foreign bitcoin businesses to incorporate there to the benefit of themselves. This said though, this is not the only improvement that can be made on tax codes worldwide. Making clarity remains the most important aspect imo.