French economy minister Bruno Le Maire stated on September 12 that French officials won’t charge tax on crypto-to-crypto exchanges, but will tax when digital currencies are sold for fiat cash.
Bloomberg Tax gave an account of Le Maire’s assertions on September 12. Per the report, he underscored:
“We believe that the moment the gains are converted into traditional money is the right time to assess tax.”
The writer of the report additionally clarifies that such a way to deal with taxing digital currency trading would help with tracking transactions, which he trusts to be a typical challenge in crypto-to-crypto trading. Le Maire also purportedly addressed Value-Added Tax (VAT) application to digital forms of money.
More accurately, he clarified that VAT is to be applied to cryptocurrency transactions only when they are utilized to procure an asset or a service. France is purportedly already actualizing the new way to deal with digital currency tax collection.
As previously reported in August, Portugal’s Tax Authority has explained that both cryptocurrency trading and payments in crypto won’t be taxed in the nation.
Also in August, a tax bill trying to permit the exclusion of gain or loss on like-kind exchanges of cryptocurrency has been presented in the United States House of Representatives.