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Israel scraps VAT on Bitcoin

  • Dec 9, 2017 | Richard Asquith

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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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.