Japan bitcoin Consumption Tax
- Oct 11, 2016 | Richard Asquith
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.