Today I had a 1,5 hr chat with the Head of the VAT devision of the Icelandic tax and two other staff members, not sure what was their titles.
The conversation went from todays news on EU courts decisions on Bitcoin being exempt from VAT. We talked about Bitcoin, Auroracoin and the ISK/AUR exchange we are opening and if VAT rules applied to the exchange. Why we are opening up with Auroracoin on the exchange, the airdrop and how Auroracoin is not breaking the currency controls and so on.
The conversation went deep into mining and how it works and why its a part of crypto and how the Icelandic government has revenue from Bitcoin via mining today. We talked about the traceability and anonymity of Bitcoin/Auroracoin and how its not a good thing for criminals, cash being the best option for criminals. The conversation moved to microtransactions, and how this technology could create an industry in 10 years and how important it was not to suffocate this great opportunity for change by adding VAT and other hurdles in its path, just like the EU courts issued that Bitcoin is exempt from VAT and is a currency.
I ended up with explaining to them how Bitcoin and Auroracoin had built in low inflation, by halving the mining reward every 4 years and probably would end as a deflationary currency (Inflation is Icelands biggest monetary problem....) I think that really got them excited.
They continued asking intense questions regarding Auroracoin and Bitcoin and just were really interested and ended up with questions like how they could buy some and when we would open up the exchange.