Thai extends VAT exemption
Thailand has extended the VAT exemption of cryptocurrencies such as Bitcoin.
The new Royal Decree 788 came into force on 25 September 2024. It extends VAT exemptions for the transfer of digital tokens or cryptocurrencies via licensed dealers and brokers which are supervised by the Securities & Exchange Commission. This applies from 1 January 2024.
Digital investment tokens were already exempted since August 2023.
Thailand falls into line with rest of world on VAT
The VAT treatment of cryptocurrencies varies across major economies, reflecting differing views on their legal status.
European Union (EU): The European Court of Justice ruled in 2015 that cryptocurrency exchange services are considered financial transactions and are exempt from VAT. Buying or selling cryptocurrencies is VAT-free, though services like mining or consulting may still be taxable. There is an ongoing EU VAT cryptocurrency review.
United Kingdom: The UK follows the EU’s VAT exemption for cryptocurrency transactions. Cryptocurrencies used as a payment method for goods or services are subject to VAT based on the underlying value, but trading in crypto itself is VAT-exempt.
United States: The U.S. does not have a federal VAT, but sales tax may apply at the state level. Cryptocurrencies are treated as property, meaning using them for purchases could trigger capital gains tax, but not VAT. Sales tax may still apply to goods and services bought with cryptocurrency.
Australia: Cryptocurrencies are treated as digital property, and while transactions involving cryptocurrencies are typically GST-exempt (similar to VAT), businesses must charge GST on goods and services bought using crypto.
Japan: Since 2017, Japan has exempted cryptocurrency transactions from consumption tax (its equivalent of VAT). Trading, buying, and selling cryptocurrencies are tax-free under Japanese consumption tax law.
Singapore: Singapore considers cryptocurrencies as intangible property. Cryptocurrencies used as a payment method are exempt from GST (Goods and Services Tax). However, GST may still apply to goods and services purchased using crypto based on their regular taxable value.
These policies reflect how governments adapt to the evolving role of cryptocurrencies in commerce.
