ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Thursday Jun 21st 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Portugal Tax Authority Issues Framework For ICO Token Taxation

By

Nathan

Graham

WriterETHNews.com

Portugal’s Autoridade Tributária e Aduaneira has published guidelines for how value-added tax regulations may be applied to initial coin offerings.

Portugal's Tax and Customs Authority, or Autoridade Tributária e Aduaneira (AT), published guidelines (in Portuguese) of how certain tokens could be taxed.

The publication came in response to a company that is planning an initial coin offering on the Ethereum platform and requested clarification as to whether its token would qualify for a value-added tax (VAT) exemption. Per the translation, "It intends to build an electronic commerce platform called MMM. This platform will be global and will have a currency or token that is necessary for users to utilize the service." It should be noted that MMM has previously been accused of being a Ponzi scheme.

VAT is a system by which products are taxed at each stage of production from manufacturing to sale, instead of only having tax applied at the end point of sale. Most goods and services purchased within the European Union are subject to VAT, but exports sold abroad are usually exempt. According to the document, MMM explained that its customers "may come from around the world, some Portuguese, many from the Euro zone and still more from outside, [such as the] USA, China, etc.."

Whether a VAT will apply depends on the parties involved in the transaction as well as the nature of the good or service, and because cryptocurrency tokens can be used in many different ways, the taxation of the digital assets must be determined on a case-by-case basis.

The AT determined that if a token is used in an exchange for a good or service, or for a function such as to execute an EDCC, it should not be exempt from a VAT. However a coin could qualify for an exemption when exchanged for another currency or legal tender.

How this particular coin will be used in the future is still to be seen, but the recent guidelines indicate the need for taxation laws to be based around how individual coins work instead of creating one law to rule them all.

Defining how a token is used for taxation purposes is not a new concept. In April, ETHNews reported that The Council of State in France defined cryptocurrencies as movable property, which drastically reduced the amount of taxes owed by investors. In the same month, Poland's Ministry of Finance decided that gains made by trading cryptocurrencies are subject to taxation


Translations approximated using Google Translate.

Nathan Graham

Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Portugal, tax or other Ethereum cryptocurrencies and tokens news.