The country of Georgia now exempts crypto from value added tax (VAT)

15 Jul, 2019
by Colin Hawkins
News
The country of Georgia now exempts crypto from value added tax (VAT)

Georgia, the country that sits on the border of Asia and Europe, announces that it has exempted value added tax (VAT) from cryptocurrencies, as reported by Bitcoin.com on July 13.

Nodar Khaduri, the finance minister of Georgia, has signed a bill with the intent of regulation the taxation of entities that trade or mine crypto. The definition of decentralized currency in the bill goes as follows:

“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.”

With this new bill, residents of Georgia can now exchange crypto for fiat currency without paying VAT. Georgia still has restrictions with its crypto however. For example, the country will not allow using crypto as payments, much like using foregin fiat currencies in the country. The legal tender of Georgia is to remain the Georgian Lari, according to Khaduri.

Mining companies are still restricted as well, they do have to pay VAT unless they are registered abroad.

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