Israel scraps VAT on Bitcoin
Israel is considering becoming the latest country to exempt sales of bitcoin and other cryptocurrencies from VAT. Instead, profits from dealing in the digital currencies will be liable to Capital Gains Tax or Corporate Income Tax.
Israel has until now categorised digital currencies as a financial asset, and not a currency, thus making trading liable to indirect tax.
Most major economies have now exempted bitcoin from their local Consumption Taxes, including the EU, Japan and Singapore. Australia has just exempted digital currencies from GST.
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