Bitcoin exchanges unable to claim cryptocurrency tax returns

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Sunday, November 28, 2021 2:46 PM

Bitcoin exchanges will not be exempt from UK digital services tax, according to the HMRC, nor do they qualify as money.

Cryptocurrency exchanges have been told they are exposed to the charge as digital assets “are not financial instruments,” leaving exchanges unable to claim tax returns on them, initially reported The Telegraph.

The digital services tax, which was introduced last year, was put in place to ensure tech giants like Google, Facebook and Amazon pour more dough into the chessboard.

The law imposes a 2% tax on online marketplaces, search engines and social media platforms which have generated revenues of over £ 500million and UK sales of over £ 25million. pound sterling.

However, the tax is expected to be phased out, following the G20 tax deal in July.

The HMRC said: “There is a wide variety of crypto assets, each with different characteristics.”

“Crypto asset exchanges are unlikely to qualify for the exemption for online financial markets.”


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