The appearance of virtual (digital) payment method – Bitcoin 2008 – BTC ATM and the spreading of cryptocurrency exchange platforms proposes questions for tax law and accounting.
The dictionary definition of these currencies is: ‘a type of digital currency that uses state-of-the-art cryptography, can be issued in any fractional denomination, and has a decentralised distribution system’.
This suggests that bitcoin and other cryptocurrency (e.g. Litecoin, Ripple, Ethereum, Dash etc.) can be taxed and invoiced at the exchange rate at the time of the transaction.
Frequently asked questions
- Is it worthwhile to trade cryptocurrency as a private person or as a business?
- Which activities do I need to take on to legally continue trading?
- What documents are needed to determine income?
- Is the BTC taxable or a tax free activity?
- What kind of income does trade from BTC count as?
- What kind of expenses can I claim against BTC trading?
- Is there any type of responsibility that needs to be considered if I want to buy, accept or trade BTC to avoid risks from illegal activities such as terrorism or money laundering?
If you would like the answers to these or any other questions regarding Bitcoin, please don’t hesitate to contact us.