Russia (Bill No. 1065710-7) is proposing to levy 20% on digital currencies such as Bitcoin. Most other countries, including European Union, have opted not to subject virtual currencies to VAT and have classified them as a method of payment – a private currency similar to national (fiat) currencies – which are VAT exempt under the provision concerning transactions relating to ‘currency, bank notes and coins used as legal tender’.
The Russian interruption of the digital currencies is that they are property, and therefore selling creates a VAT liability. Traders will have to Russian VAT register if they sell more than Rubles 600,000 per annum (about €6,700).
The new law will be enacted for 2021.
Source: Avalara
Latest Posts in "Russia"
- Russia Proposes 2026 Tax Relief and Flexible Rules to Support SME Transition
- Russian Finance Ministry Explains New VAT Rate Impact on Lease Accounting Under IFRS
- Catering Businesses to Be Exempt from VAT Starting April 1 Under New Tax Law Amendments
- Are Educational Services Provided by Medical Institutions Subject to VAT?
- New VAT Return Form and Rates for Q1 2026: Updated Requirements and Control Ratios
