Georgia finance minister signs bill exempting fiat-to-crypto transactions from VAT
|- “Cryptocurrencies are digital assets that are exchanged electronically,” Georgia.
- Businesses in Georgia are still not allowed to accept cryptos as payment.
In a groundbreaking milestone for the cryptocurrency space, Georgia has become the first country in its region to treat cryptocurrency transactions in the same way as foreign currencies. A report by Bitcoin.com indicates the minister of finance Nodar Khaduri signed into law a bill that exempts value-added tax (VAT) from being imposed on crypto transactions.
According to a definition by Georgia government:
“Cryptocurrencies are digital assets that are exchanged electronically and based on a decentralized network. Their exchange does not require a reliable intermediary and they are managed using distributed ledger technology.”
While this a huge step for the cryptocurrency community in Georgia, Khaduri emphasized that the tax exemption is only applicable for fiat-to-crypto transactions. This does not mean that cryptos are lawful ledger; it is only that the government is treating them as foreign currency.
Read More: Ripple market overview: XRP/USD lock-step trading stalls under $0.32
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.