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Japan bitcoin Consumption Tax


Japan bitcoin Consumption Tax

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.

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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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.