Etienne Wong (Old Square Tax Chambers) answers a query on the VAT issues concerning investing bitcoins in an initial coin offering.
Question
My client Bob lives in the UK. He is not a taxable person for VAT purposes. In September 2017 he bought some bitcoins. He is an investor and does not trade in them. He is now considering investing some of his bitcoins in an (as yet to be identified) initial coin offering (ICO) – a wholly digital means of raising finance – subscribed for in bitcoin (or other cryptocurrencies) rather than fiat currencies. Bob has been looking at ICOs based in Switzerland Singapore and Hong Kong and wants to know what (if any) VAT issues would arise if he were to proceed with such an investment.
Answer
As a bitcoin investor (rather than trader) Bob...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Etienne Wong (Old Square Tax Chambers) answers a query on the VAT issues concerning investing bitcoins in an initial coin offering.
Question
My client Bob lives in the UK. He is not a taxable person for VAT purposes. In September 2017 he bought some bitcoins. He is an investor and does not trade in them. He is now considering investing some of his bitcoins in an (as yet to be identified) initial coin offering (ICO) – a wholly digital means of raising finance – subscribed for in bitcoin (or other cryptocurrencies) rather than fiat currencies. Bob has been looking at ICOs based in Switzerland Singapore and Hong Kong and wants to know what (if any) VAT issues would arise if he were to proceed with such an investment.
Answer
As a bitcoin investor (rather than trader) Bob...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
