All virtual currency transactions in Belgium will be exempt from VAT

According to CoinDesk, the Belgian Ministry of Finance (FPS) recently officially announced that all virtual currency transactions in the country will be exempt from VAT. This move is expected to support local Bitcoin startups in Belgium to compete with international Bitcoin exchanges .

Compared with Poland and Estonia, which impose 23% and 20% VAT respectively on virtual currency- related transactions, Belgium and the United Kingdom have a more relaxed attitude.

The FPS representative stressed that Bitcoin is not officially recognized as legal tender in Belgium , and the cancellation of VAT on virtual currency transactions may only be temporary. It is reported that the issue of taxing Bitcoin transactions was raised by Belgian startup Belgacoin, and the authorities responded via email. However, as for the taxation of Bitcoin in the entire European Union, it will take longer to reach a consensus. Esteban van Goor, a tax lawyer from the Netherlands, believes that "it will take the European Court more than two years."

However, it should be noted that the transactions here refer to the transactions of Bitcoin itself, not consumption activities (such as using Bitcoin to buy Coke or something), but it is still good news. After all, as mentioned in the first paragraph, just to cultivate the local Bitcoin power, exemption from VAT is also a good consideration.