Tax-free is an exaggeration, as bitcoin is still subject to capital gains tax, and of course you'll have to pay sales tax/VAT if you use bitcoin to buy things, just as if you bought the same things with euros or dollars.
Tax-free is an exaggeration, as bitcoin is still subject to capital gains tax, and of course you'll have to pay sales tax/VAT if you use bitcoin to buy things, just as if you bought the same things with euros or dollars.
If I still have to pay capital gains tax and sales tax on it, then what's different about taxes in regards to bitcoin vs. government currency?
The difference is that Bitcoin is now recognized as a currency, and as such is not subject to VAT when one wishes to, for example, exchange Euros for Bitcoin. Previously, EU residents would pay VAT on such an exchange because Bitcoin were more or less recognized as a good or service, and thus subject to VAT.
http://www.correntmacri.com/harmonized-sales-tax-due-sale-bi...