Could bitcoin transactions conducted in the Netherlands be VAT-exempt? It’s certainly a possibility, it seems.
According to bitcoin news reporting website Coincourant [Dutch], Mr. Jacob Kamminga of the country’s Ministry of Finance hinted at the possibility in the midst of a debate held at an Amsterdam university.
Of course, Kamminga’s statements should in no way serve as the official stance of the Dutch Ministry of Finance, but as pointed out by Coincourant, it could be a prediction of what’s to come.
VAT (value-added tax, for those in the United States) is tax applied to the purchase price of goods or services (much like a sales tax is applied here in the US).
To be clear: this doesn’t mean that there would be no VAT applied when purchasing a good or service. Rather, what we’re looking at the possibility of is that a VAT on the digital currency might not be applied in addition to the regular value-added tax.
The general rate of the value-added tax in the Netherlands stands at about 21 percent.
Such an occurrence could very well help the adoption of the digital currency in the Netherlands, which has shown increased interest in bitcoin over the past year. In other words, it would be very welcomed news, particularly for those who conduct trading activities with the digital currency.
Obviously, stay tuned for developments on this front. If any official information comes from the Dutch Ministry of Finance, we’ll have it here for you.