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Can we avoid VAT if we trade in bitcoin? Watch

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    i am no expert in financial regulations, hence the amateurish question.

    if i start my own online business selling stuff in bitcoins, can i avoid paying VAT?
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    (Original post by HucktheForde)
    i am no expert in financial regulations, hence the amateurish question.

    if i start my own online business selling stuff in bitcoins, can i avoid paying VAT?
    I thought sellers don't pay VAT anyway?
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    (Original post by Reue)
    I thought sellers don't pay VAT anyway?
    i mean not having my buyers to pay it.
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    (Original post by HucktheForde)
    i mean not having my buyers to pay it.
    Why would you want to assist your buyers in committing tax fraud?
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    (Original post by Reue)
    Why would you want to assist your buyers in committing tax fraud?
    Because it saves them money.
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    (Original post by hoping4Astars)
    Because it saves them money.
    How thoughtful
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    (Original post by Reue)
    How thoughtful
    I don't understand. What the OP wanted to do isn't illegal since he is using Bitcoins, which don't require the buyer to pay VAT. This means he is saving them money, which is thoughtful. It decreases the price they Hav to pay, making him more competitive as a seller.
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    (Original post by hoping4Astars)
    I don't understand. What the OP wanted to do isn't illegal since he is using Bitcoins, which don't require the buyer to pay VAT. This means he is saving them money, which is thoughtful. It decreases the price they Hav to pay, making him more competitive as a seller.
    Why would the method of payment make any difference to the VAT requirement?
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    (Original post by Reue)
    Why would the method of payment make any difference to the VAT requirement?
    Bitcoins are tax free in the EU:
    http://www.bloomberg.com/news/articl...-says-ig21wzcd
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    (Original post by hoping4Astars)
    Bitcoins are tax free in the EU:
    http://www.bloomberg.com/news/articl...-says-ig21wzcd
    Tha'ts exchanging money for bitcoin, not for exchanging goods or services for bitcoin.

    It's how you don't get taxed for swapping a £10 for 2 x £5 at a bank.. but will get taxed if you buy something for £10.
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    (Original post by Reue)
    Tha'ts exchanging money for bitcoin, not for exchanging goods or services for bitcoin.

    It's how you don't get taxed for swapping a £10 for 2 x £5 at a bank.. but will get taxed if you buy something for £10.
    Errr...... are u serious?

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    Because a 'currency' which lost over 50% of its 'value' in 8 hours is totally practicable.


    The only time I would use Bitcoin is if this country banned people from moving money out of the country because some sort of apocalyptic financial meltdown was taking place and I wanted to jump ship to the land of the free.
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    About 100% sure that that'd be considered tax fraud, jut saiyan'
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    (Original post by Reue)
    I thought sellers don't pay VAT anyway?
    Sellers collect it and pass it onto HMR&C, once their turnover - not profit! - goes above a certain level. It's more than £80k a year at the moment.

    Buyers pay it whenever a seller charges it.

    To answer the original question, no. If the value of what you do goes over the threshold, that you chose to accept payment in bitcoin or tins of baked beans doesn't matter.

    Bitcoin is also looking very dodgy at the moment due to the argument over the necessary but resisted change in the blockchain and keeping any for more than the shortest necessary time is risky. The change allowing people to undo transactions before they're committed is another big problem.
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    You would need to be VAT registered to charge VAT on your products. The threshold for registering VAT is £82,000.
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    (Original post by HucktheForde)
    Errr...... are u serious?

    Posted from TSR Mobile
    Why would I not be
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    (Original post by unprinted)
    Sellers collect it and pass it onto HMR&C, once their turnover - not profit! - goes above a certain level. It's more than £80k a year at the moment.

    Buyers pay it whenever a seller charges it.

    To answer the original question, no. If the value of what you do goes over the threshold, that you chose to accept payment in bitcoin or tins of baked beans doesn't matter.

    Bitcoin is also looking very dodgy at the moment due to the argument over the necessary but resisted change in the blockchain and keeping any for more than the shortest necessary time is risky. The change allowing people to undo transactions before they're committed is another big problem.
    thx for answering, i wasn't serious about it, just thought about this question considering bitcoin is a decentralized currency.
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    If you're selling something as a one off then of course, just as you can avoid VAT by trading in cash.

    But if you own a business then your end of year accounts will require that you state what you sold and they want the VAT so +20% paid in tax.

    So nope :/!
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    (Original post by HucktheForde)
    thx for answering, i wasn't serious about it, just thought about this question considering bitcoin is a decentralized currency.
    Various firms have tried to cut their employees' taxes by paying in sovereigns - nominally a pound, but worth much more because of their gold content - or fine wine. Doesn't work: it's the real value that counts, not what you're doing it in.
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    Can I get a job and ask to be paid in bitcoins to dodge income tax?? Genuine question.
 
 
 
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