VAT and tax arrangements for sellers
As a seller on the BitBoost marketplace, you are responsible for your own taxes, including income tax and VAT. These will be different depending on your jurisdiction, so you should ensure you stay up to date with current regulations. The marketplace will include some tools to help sellers manage their accounts in due course.
Like traders on most e-commerce platforms, sellers are responsible for their own tax and accounting arrangements. This will include income tax – that is, the tax you pay on and profits – and VAT or GST. If you are holding cryptocurrency (ETH and/or BBT) in your account, which you later sell at a profit, you may also be liable for capital gains tax. Once again, the rules for how this applies vary according to country.
Please note that BitBoost do not claim to be tax lawyers or accountants. None of the following constitutes expert advice and should not be taken as such. Please inform yourself of the appropriate regulations for your jurisdiction and seek independent, professional advice if necessary.
Of the three, the rules around VAT are likely the most complex. If you are just making an occasional sale, you probably won’t have to worry. If you run a store for a living, though, you’ll need to know your way around the VAT system. The size of your turnover, the locations of your buyers and also their nature (business vs individual) may have a bearing on whether you need to pay VAT and, if so, how much.
The following resources may be of some help in understanding VAT and other forms of taxation:
- International guidelines on VAT/GST, including the purpose and features of VAT and its context in cross-border trade: https://www.oecd.org/ctp/consumption/international-vat-gst-guidelines.pdf
- This guide is a good primer for e-commerce businesses, outlining some of the main rules you should know about. You’ll need to make sure you’re up-to-date for current tax year. https://www.webretailer.com/lean-commerce/european-ecommerce-vat/#/
- This background article from 2001 discusses tax within the nascent phenomenon of e-commerce, and some of the problems around applying internationally-recognised processes: http://oecdobserver.org/news/archivestory.php/aid/416/E-commerce_and_taxation:_a_virtual_reality.html
We’ll be adding some tools to the marketplace to help sellers track their activity, with a view to making it easier to figure out your tax affairs. Meanwhile, if you are in any doubt then a conversation with a tax professional should help to clarify matters and can end up helping you save a lot of money.