Topic: Value-added tax on loans/interests? (Read 521 times)
The world will be miserable and poverty become worst as ever if value added tax on loans/interests.
Are we talking about taxation of loans/interests of Bank products or you have on mind cryptocurrency lending?
I doesn't matter though because adding even more taxes to already heavily taxed sector is stupid and counterproductive.
It will cause same stupid complication as we can observe now in Europe and Japan with negative interest rates.
Instead of stimulate economy - it will be a dead end of banking.
I doesn't matter though because adding even more taxes to already heavily taxed sector is stupid and counterproductive.
It will cause same stupid complication as we can observe now in Europe and Japan with negative interest rates.
Instead of stimulate economy - it will be a dead end of banking.
All the loans should have VAT inside. For example if there is a $100.000 loan and the VAT is 25% then the $20.000 is VAT. It is simple logic but i dont understand why is not happening.
What is logical about commerce grinding to a halt if VAT was imposed on loans? Would you do the same to mortgages?
All the loans should have VAT inside. For example if there is a $100.000 loan and the VAT is 25% then the $20.000 is VAT. It is simple logic but i dont understand why is not happening.
Because bitcoin is virtual, treating it as an asset is more suitable in terms of taxation laws instead of treating it as an currency. Assets holding does not incur taxes usually but buying or selling assets must have taxes. In future we might have :
As long as you're dealing with bitcoin you need not to pay tax. Dealing = adopting and spending bitcoin.
If you convert bitcoin into fiats, you may need to pay taxes.
All the loans should have VAT inside. For example if there is a $100.000 loan and the VAT is 25% then the $20.000 is VAT. It is simple logic but i dont understand why is not happening.
What do you think?
And what`s the point of a value-added tax over loans/interests?
The loans will become more expensive and this will hit the economic growth.
The economy needs cheap loans in order to maintain growth.
What do you think?
.I don't get whatyou are trying to ask here. Can you rephrase what you want to get from this question?Lenders do charge interest on loans but I don't understand how there is a VAT in it since this is a cryptocurrency. VAT are charged by the government. Spending the money is the only part you will be charged with VAT.
No, if you are using asking particularly about bitcoin (or any other crypto currency) since there is no mechanism to identify and trace the amount of loan and interest one can’t simple add value added tax on the transaction. When talking about fiat only authorized traders can charge such kind of tax in prescribed conditions and they have to submit collected tax to the government. It’s better to have a look on laws of your jurisdiction to have an idea about it.
What do you think?
VAT does not get charged on supply of money, so No. VAT is not suitable for interests earned by loaning money. And with bitcoin you are anyways taking too much risk .
Since there's not a real clear question, I think nothing. If you can reformulate more clearly what you meant I could give you my opinion.
What do you think?
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