Bitcoin subject to VAT: 20% price rise for some of us soon

[phoenix1]

As far as I am aware there is no VAT charged between  EU countries when sending physical goods. Heck you don't even need a customs form.

When sending package from one country to another in the EU then this may be so. However, VAT also means the tax that is taken when you buy anything from a shop. For example, if you go to your local computer hardware shop and want to buy a computer then you have to pay +20% of the actual price if you are a consumer. According to the law, the same goes to bitcoin. This means that all bitcoin ATMs must take +20% of the actual price.

In which EU countries?
I think you are mistaken in your opinion that this is EU wide (that's how I interpret your position)

eg UK ...
http://www.inniaccounts.co.uk/2014/03/bitcoins-tax-guide-uk/

For tax purposes, HMRC treat Bitcoins as they do any other currency

HMRC have recently updated their tax guidance in light of the growing popularity of Bitcoin. They’ve taken a very pragmatic approach and Bitcoins are treated in the same way as an other non-sterling currency.

VAT on Bitcoins

Buying and selling Bitcoins, and any commission payable on the exchange, is exempt from VAT. However, regular VAT rules remain when you’re supplying goods and services in return for Bitcoin. In this case, you must calculate and charge VAT on the sterling value of the Bitcoin at the time the transaction takes place. For example (based on the exchange rate when this article was written) if you raise an invoice for 1.3BTC (BTC means Bitcoin), you must calculate VAT on a value of £457.

Please provide sources for your claim as your Slovenian article certainly does not support your pan-EU allegation.
Not trying to be a pain in the arse, but if you are in fact correct, it does have big implications, so I get why you are bringing it up.

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[Hyena]

In which EU countries?
I think you are mistaken in your opinion that this is EU wide (that's how I interpret your position)

I don't know about other EU countries but in Estonia this is the case. From the letter I personally understand that this service-receiver-location-dependent-taxing will be EU-wide law starting from 1st of January 2015. I deduce that from the fact that if the law was not to manifest EU-wide then the letter from the Ministry of Finance would not state EU so many times everywhere

Please provide sources for your claim as your Slovenian article certainly does not support your pan-EU allegation.
Not trying to be a pain in the arse, but if you are in fact correct, it does have big implications, so I get why you are bringing it up.

It has big implications in a sense that Bitstamp would have to check if a customer is from Estonia and then charge additional 20% VAT on the sold bitcoins. It would be reasonable to think that Estonia is not the only EU country that has sales tax / turnover tax / value added tax on everything you can buy. However, at this point I am not aware of any other country that has similar laws. I hope I made myself clear. The VAT discussions can get confusing because it is also used to tax things when you buy them online from another country to protect the local market. However, in Estonia VAT is also taken on absolutely every item you can buy from a store (bread, clothes and what not).

edit:
I do suspect that Estonia might also consider Bitcoin VAT-exempt because Finland did it and Estonia is closely related to Finland. IF all countries considered Bitcoin VAT-exempt then there would be no problem for anyone. The law about service receiver's location is a bit worrisome though because bitcoin exchanges would then have to differentiate customers by their country and apply different tax laws to them based on their location.

[phoenix1]

Thanks for clarifying your position Hyena - let's wait and see