Bitcoin is treated as any other currency - you only don't need to pay VAT when you're trading for another currency. The same way you would pay VAT when swapping GBP to EUR.
Bitcoin is digital cash. Someone could avoid taxes in the same way they avoid taxes with physical cash.
The authorities dont have much trouble policing income tax with physical cash so I'm not sure bitcoin would be any different.
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Can we avoid VAT if we trade in bitcoin? watch
- 28-05-2017 14:52
- Community Assistant
- 30-05-2017 10:56
No - see above.
Plus given that you and/or they're not so stupid as to have a constant amount of Bitcoin involved because of the extreme volatility, it's going to be screamingly obvious what the real value of your wages is.