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AuroraSpjall

The official Auroracoin discussion board

VAT on Auroracoin

Almenn umræða um allt sem tengist Auroracoin
- General discussion about the Auroracoin ecosystem

by Dinobotta » 22 Oct 2015 23:42

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.
"Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone". Satoshi Nakamoto
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by BioMike » 23 Oct 2015 07:45

So, would AUR be VATted in Iceland, or would it follow the EU and see it as a currency?
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by Dinobotta » 23 Oct 2015 09:19

BioMike wrote:So, would AUR be VATted in Iceland, or would it follow the EU and see it as a currency?


The Icelandic VAT team is forwarding my request along with the EU courts ruling on Bitcoin to the top branch of the Icelandic tax.

They said they didn't see how they could exclude crypto unless they drag the whole banking sector into paying VAT on all loans, securities and currency exchanges... which is unlikely.

They said they "might" issue a statement that crypto will be treated like a currency when it comes to VAT. They said that maby it's not for the Icelandic tax to decide whether or not crypto is currency or not.

The thing is Iceland is part of the EU court system and Icelandic laws and Icelandic judges have to consider or follow through with all EU courts rulings, but they have some loopholes to dodge some of these rulings.
"Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone". Satoshi Nakamoto
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by BioMike » 23 Oct 2015 21:23

Any idea how quick these things can go? Days, weeks, months, years?
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by Dinobotta » 24 Oct 2015 10:16

My guess is a week or two. Else I will start pressing for answers.
"Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone". Satoshi Nakamoto
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