- Cryptocurrency is digital currency created by mathematical computations and verified by miners.
- Bitcoin, the first popular cryptocurrency, appeared in 2009 and can be stored offline.
- VAT treatment for exchanging traditional currencies for Bitcoin is exempt, similar to other currency transactions.
- Using Bitcoin to pay for goods or services is outside the scope of VAT.
- Goods or services paid for in Bitcoin are treated like those paid with traditional currencies or non-monetary consideration.
- Conversion of Bitcoin to a main currency can use the latest exchange rate or the Open Market Rate.
- Valuation of Bitcoin for VAT purposes can be challenging due to its decentralized nature.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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