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Esteban Van Goor - Presentation at the European Bitcoin Convention
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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
www.pwc.com/nl
The European Bitcoin Convention - @EAVGRPwC 2
About me
26 September 2013
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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?
26 September 2013
The European Bitcoin Convention - @EAVGRPwC
BTC and taxation in the Netherlands
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126 September 2013
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Trends with respect to BTC and taxation The virtual world of taxation
26 September 2013
• 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!
The European Bitcoin Convention - @EAVGRPwC
VAT issues related to BTC
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VAT issues related to BTC The virtual world of VAT
26 September 2013
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VAT issues related to BTC The impact of VAT (1)
26 September 2013
Source: Happycoins
This transaction looks simple… right?
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VAT issues related to BTC The impact of VAT (2)
26 September 2013
For VAT this is not as simple as it seems….
Transaction Remuneration
Sending BTC to the BTC exchange
BTC are sold on the BTC exchange
BTC exchange will 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 his bank accountWhat about the 25 BTC awarded for finding a new block….?
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Other tax issues related to BTC The impact of Gaming tax and VAT within BTC gambling
The European Bitcoin Convention - @EAVGR 26 September 2013
• 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?
26 September 2013
• 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
26 September 2013
Esteban van Goor
+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......
