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.