Japan bitcoin Consumption Tax

Wed 12th Oct 2016

The Japanese Ministry of Finance is expected to shortly announce that the sale of bitcoin and other virtual currencies will be exempted from 8% Consumption Tax.

The change in fiscal policy is based on a reclassification of bitcoin as a payment method by the Fund Settlement Law.

Japan is one of last major economies to levy a consumption tax on bitcoin sales. The tax hampers the industry growth as it compounds costs with taxes on each supply in the chain.  Australia still levies 10% Goods & Services Tax on bitcoin trades. The EU dropped removed VAT on sales across all 28 member states last year.