Republic of Georgia exempts cryptocurrencies from value added tax
The citizens can now change cryptocurrencies by fiduciary currency without the transaction being subject to VAT
The finance minister of Georgia, Nodar Khaduri, approved a bill to regulate the taxation of entities that trade or mine cryptocurrencies. The bill came into effect at the end of June.
The definition of decentralized currency that the bill presents is: “Cryptocurrencies are digital assets that are exchanged electronically and are based on a decentralized network. Their exchange does not require a reliable intermediary and they are managed using distributed registry technology.”
Now the residents of the country can change cryptocurrencies by fiduciary currency without the transaction being subject to VAT. The Georgian lari will remain the legal currency in Georgia and the country does not contemplate allowing the use of crypts to make payments for goods and services.
The mining companies will still have to pay the VAT, unless they are registered abroad. This may well result in the relocation of local mining businesses.
L.Sáenz
Source: Cointelegraph
