The finance ministry reportedly issued a statement that bitcoin trading transactions are not subject to VAT, however, its position is subject to change pending the position taken by the European Committee.
IRS Clarifies Tax Treatment of Bitcoin and Other Convertible Currencies
The IRS issued Notice 2014-21 yesterday, which describes how the IRS will apply U.S. tax principles to transactions involving virtual currency. The GAO had previously issued a report on virtual economies and currencies, calling for additional IRS guidance on the basic tax reporting requirements applicable to virtual currencies.
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