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Russia 20% VAT on cryptocurrencies 2021

  • Dec 4, 2020 | Richard Asquith

Russia (Bill No. 1065710-7) is proposing to levy 20% on digital currencies such as Bitcoin. Most other countries, including European Union, have opted not to subject virtual currencies to VAT and have classified them as a method of payment – a private currency similar to national (fiat) currencies - which are VAT exempt under the provision concerning transactions relating to 'currency, bank notes and coins used as legal tender'.

The Russian interruption of the digital currencies is that they are property, and therefore selling creates a VAT liability. Traders will have to Russian VAT register if they sell more than Rubles 600,000 per annum (about €6,700).

The new law will be enacted for 2021.

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.
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