New documents suggest Italy's top tax office is treating bitcoin as a form of currency.Agenzia della Entrate, Italy's top tax authority, released new information this month about its treatment of digital currencies, a publication that comes months after an EU court ruling regarding how value-added tax (VAT) would apply to transactions executed using the technology.According to the Agenzia della Entrate, purchases and sales made with bitcoin remain exempt from VAT – a decision that mirrors a decision by the European Court of Justice (ECJ) last October.However, Italian tax officials, the documents show, are applying income tax to speculative uses of bitcoin, or events in which money is made during a sale or purchase.The agency published the ruling in response to a request by a business in Italy, the name of which wasn't disclosed.Those buying bitcoins outside of the scope of speculative activity, it indicates, aren't required to pay income tax.In doing so, the Agenzia Entrate appears to be treating bitcoin as a form of currency, a move that is the latest turn regarding bitcoin taxation worldwide.

While the ruling largely brings Italy in line with the decision set by the ECJ, it further highlights the disparity between Europe and countries like the US, which taxes bitcoin as a form of property.At least one analyst reported there are issues with how the Agenzia della Entrate crafted its ruling, however.Italy-based CPA and tax advisor Stefano Capaccioli, who has written about the issue on his blog, said that the ruling creates a new layer of uncertainty for businesses working with the digital currency.Specifically, while the agency is looking to tax bitcoin as a form of currency, Italian law itself doesn't recognize it as such.Further, he said that accounting standards in place today in Italy are also in conflict with the Agenzia Entrate’s position on bitcoin."It could generate more problems than solutions," he told CoinDesk.Italian tax form via Shutterstock The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.

On September 2, Agenzia delle Entrate, the major Italian tax authority, published a new document titled “Bitcoin and digital currencies buying and selling: clarification on the tax treatment” about the fiscal treatment of Bitcoin and how VAT would be applied to digital currency transactions.grafico diario bitcoinThe document states: “Traditional currency intermediary activities made with virtual currencies held by market participants are exempt from VAT, as they are among the transactions related to banknotes and coins.” In Italy there are several places where you can use Bitcoin as a method of payment.купить bitcoin qiwiFrom tennis clubs to painters, from bed and breakfast to lawyers, you can buy everything you need with Bitcoin, especially in the tourist and computer fields.как купить bitcoin qiwi

Individual Bitcoin users The document specifies different rules according to the kind of users: individuals and companies.In line with recent guidelines of the EU Court of Justice, the resolution makes it clear that for individual users holding Bitcoin outside of a business activity, these are spot transactions which do not generate taxable income because it lacks speculative purpose.bitcoin reginaBusiness consultant and tax advisor Antonello Gaviraghi explained to CoinTelegraph: “About the gains of individual users, this resolution specifies that they are not taxed because they have no speculative purpose.definition bitcoin deutschHowever, this interpretation is to be applied also to the detention of Bitcoin in relatively small amounts.litecoin 6 gpuIncomes from transactions made by individuals on a currency become taxable when the total stock of all the foreign currency deposited in accounts held is greater than 51.645,69 euro for at least 7 days, using for the calculation of the stock the current exchange rate prevailing at the beginning of the reporting period, or January 1st.” Companies who hold Bitcoins Instead of individuals, the Agenzia delle Entrate resolution specifies that  revenues - coming from intermediation in the purchase and the sale of Bitcoins - are subject to IRAS and IRAP, net of related costs.bitcoin mining alone vs pool

To evaluate the Bitcoins held by the company at end of the year it is necessary to consider the normal value, or their prices at that time.For this reason, Gaviraghi explains that this resolution is a disadvantage for business, because companies will have to pay tax on unrealized capital gains or losses.swtor bitcoinHe notes: “Any unrealized capital gains or losses, arising from the difference between the purchase cost and the evaluation at the end of the year will be subject to capital gain taxation.bitcoin value speculationThis is is a serious disadvantage for companies who hold Bitcoins for their activities, who will have to pay taxes on profits not yet realized, but only estimated.” Username * First Name Last Name Email * Password * Repeat Password * You registration completed successfully.