Republic of Georgia Exempts Cryptocurrencies From Value-Added Tax

Republic of Georgia has exempted cryptocurrencies from value-added tax (VAT), as Bitcoin.com reported on July 13.

Per the report, Georgia’s finance minister Nodar Khaduri recently signed a bill aimed at regulating the taxation of entities that trade or mine cryptocurrencies. The bill entered into force at the end of June. The definition of decentralized currency that the bill puts forward is reportedly the following:

“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 the introduction of the bill, residents of the country can exchange cryptocurrencies for fiat currency without the transaction being subjected to VAT. Still, Khaduri pointed out that the Georgian lari will remain the legal tender in Georgia and that — just like foreign fiat currencies — the country will not allow using cryptos for…