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BitPrice just had a very positive meeting with HMRC regarding VAT and Bitcoin. We attended with Marc Warne of Bittylicious, Eitan Jankelewitz of Sheridans solicitors and Michael Parsons.
We explained in detail what Bitcoin is and how it is used, following which they agreed that their categorisation of Bitcoin as: "a face-value voucher... likely 'face value vouchers'" is inaccurate. They will be rescinding this advice.
This is significant because under that definition, VAT would be due on the sale of Bitcoin, making the use of Bitcoin largely unviable in the UK. HMRC are to take legal advice on exactly how Bitcoin should be treated with regards to VAT, but the meeting was very positive and I would expect further good news in the new year.
Tom Robinson, BitPrice www.bitprice.com
See: http://www.coindesk.com/hrmc-decides-rethink-tax-stance-bitcoin/
We explained in detail what Bitcoin is and how it is used, following which they agreed that their categorisation of Bitcoin as: "a face-value voucher... likely 'face value vouchers'" is inaccurate. They will be rescinding this advice.
This is significant because under that definition, VAT would be due on the sale of Bitcoin, making the use of Bitcoin largely unviable in the UK. HMRC are to take legal advice on exactly how Bitcoin should be treated with regards to VAT, but the meeting was very positive and I would expect further good news in the new year.
Tom Robinson, BitPrice www.bitprice.com
See: http://www.coindesk.com/hrmc-decides-rethink-tax-stance-bitcoin/
This is potentially good news as many have been trying to trade Bitcoins legally but are getting stuck if they sell more than £77k worth in a year as they must then charge VAT (an extra 20% on the price, so no one would buy them).