Singapore suggests abolishing VAT for cryptocurrency transactions
The Inland Revenue Authority of Singapore (IRAS) proposed to fully exempt cryptocurrencies from value added tax. If new rules are approved, they will enter into force on January 1, 2020.
Stablecoins are not likely to fall under the definition of digital money. The government introduced the amendment of the current legislation to comply with global practices in the regulation of the cryptocurrency market.
The IRAS defined digital money as interchangeable, not related to existing currencies and conceived as a means of payment assets, measured in units with Bitcoin, Ethereum, Litecoin, Monero, Zcash and Ripple as an example.
In late June, the central bank of Singapore spoke about a meeting with representatives of Libra blockchain project from Facebook. The financial regulator manager recognized the potential benefits of a new cryptocurrency, but noted the importance of introducing proper legal controls.
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Information source: "В Сингапуре предложили отменить НДС для сделок с криптовалютами”
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