The world’s first decentralized payment system, bitcoin, has caught the public’s attention over the past couple of years, mainly because of its increasing exchange rate to major currencies and its effects on the Economy and society.
As a result of bitcoin’s increasing popularity, it is now regarded as a commodity in Finland. As a result, the Finnish Central Board of Taxes has recently published a guidance note clarifying that bitcoins are subject to VAT if acquired for consideration or if they constitute an income item at the time when they are received.
The same rules apply to other kinds of virtual currencies, which are treated as means of payment if they can be used to pay for goods or services.
However, bitcoin transactions are not subject to capital gains tax or corporate income tax because bitcoins do not legally qualify as a currency or similar form of payment under the Finnish Tax Administration’s official interpretation.
Even if you do not buy or sell Bitcoins, it is nice to see that bitcoin is becoming more widespread and popular in Finland and around the world! It is something to consider, especially when we know the exchange rate is going up and up every day.
Bitcoin as Technology in France:
Bitcoin is an excellent example of using sound technology to create something new. Even though there are pros and cons, bitcoin is becoming extremely popular, significantly when the exchange rate has risen quite a bit in just one month.
Bitcoin faces an uphill battle in France, where it’s currently classified as a “movable property,” or movable asset for short. However, despite its classification, bitcoin has been registered by the High Court of Paris as a “digital good,” making it the first Bitcoin legally recognized in France.
Experts are optimistic about bitcoins success in France, pointing to how bitcoins allow French people living abroad to remit money back home with low costs and ease of use.
France has just become the first country to officially recognize bitcoin as a digital good, thus being traded on public exchanges. The Court made the classification of Appeal of Paris after several weeks of deliberation. It is important to note that this means bitcoins are not classified as financial securities but rather as movable property.
Tax and Economy of bitcoin in France:
According to Emmanuel Marill, a French tax advisor, bitcoin is not considered legal tender but rather an exchangeable good (like precious metals). Therefore, it will be subject to sales tax like any other transaction with movable goods. According to the court ruling: “There exists a single transmission of ownership that cannot be divided.”
According to Olivier Salles, a member of an economic commission at the French National Assembly:
“This decision greatly simplifies procedures for companies which, until now, had to deal with the administrative micro-structures of the financial markets working with traditional currencies. https://bit-qt.app/ is a currency that offers many advantages for both – consumers and companies.”
The French Minister of Economy also weighed in on bitcoin’s potential: “I am pleased that Paris Europlace has chosen to bring its know-how at the service of companies who are interested in developing their business in France.”
Bitcoin’ official in France
France has just become the first country to officially recognize bitcoin as a digital good, thus being traded on public exchanges. Accordingly, the Court made the classification of Appeal of Paris after several weeks of deliberation.
According to Emmanuel Marill, a French tax advisor, bitcoin is not considered legal tender but rather an exchangeable good (like precious metals). Therefore, it will be subject to sales tax like any other transaction with movable goods.
Though the article discusses some negative aspects to consider, such as its classification as a movable asset and finding its place in France’s complex legal system, overall, the tone of this article is positive.
The article’s main point is that France has officially recognized bitcoin for the first time & will allow it to be traded on public exchanges. It is also interesting that it has been granted status as a digital good by the High Court of Paris. This marks the first time that bitcoin will be legally recognized in France.