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The European Bitcoin convention

A tour through the virtual world of taxation

Esteban van Goor LL.M. @EAVGR
Amsterdam, 26 September 2013

About me

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Topics
1. Trends with respect to BTC and taxation in the Netherlands.

2. VAT issues related to BTC transactions and BTC gambling. 3. Starting up a business, what to do?

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BTC and taxation in the Netherlands

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Trends with respect to BTC and taxation The virtual world of taxation
The Dutch Minister of Finance stated that: o BTC revenue generated might be taxable income o BTC transactions might be relevant for VAT o a decree which was already issued with respect to Local Exchange and Trade System might be relevant for tax related questions in relation to BTC Did you see the word might? In tax law this means a lot of uncertainty!

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VAT issues related to BTC

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VAT issues related to BTC The virtual world of VAT

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VAT issues related to BTC The impact of VAT (1)

Source: Happycoins

This transaction looks simple right?

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VAT issues related to BTC The impact of VAT (2)

Transaction Sending BTC to the BTC exchange Remuneration

For VAT this is not as simple as it seems.

BTC are sold on the BTC exchange will BTC exchange receive a transaction fee Transaction takes place and is taken care of by the miners Network transaction fee (fee for creating a BTC block)

Seller receives on 25 BTC awarded for finding a new What about$the his bank account block .?
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Other tax issues related to BTC The impact of Gaming tax and VAT within BTC gambling
Coherence between Dutch gaming tax and VAT Impact for players Impact for operators

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Starting up a business, what to do?

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Starting up business, what to do?

In general: think about your business structure In specific: o think about the overal tax consequences of trading with BTC o check your VAT position i.e. as VAT might have a direct effect on your margin (VAT is a game changer) Speak with the competent (Dutch) tax authorities

Just remember, this is a new phenomenon for which no new block is found yet

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Questions? Feel free to contact me

Esteban van Goor

esteban.van.goor@nl.pwc.com
+31 88 792 17 96

Stay up to date and follow me on twitter: @EAVGR and/or add me on LinkedIn

Thanks for your attention......

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