Singapore Plans To Exempt VAT for Transacting in Cryptocurrencies



Singapore is on the verge of exempting cryptocurrencies that are meant to function as a medium of exchange from Goods and Services Tax (GST). It is equal to Value-Added Tax (VAT).

The news was made known via a publication made by the Inland Revenue Authority of Singapore (IRAS) on July 5th.

The exemption, if accepted, will take effect on January 1st, 2020, and will overhaul the current system wherein the supply of digital payment tokens is treated as a taxable supply of services.

According to IRAS, till now cryptocurrencies that function or are intended to do so (as a medium of exchange) have been treated as a barter trade that results in two separate supplies which are taxable token supply and a supply of the relevant goods and services.

The document lists the two proposed core changes to taxation rules in future as:

“The use of digital payment tokens as payment for goods or services will not give rise to a supply of those tokens; and (ii) The exchange of digital payment tokens for fiat currency or other digital payment tokens will be exempt from GST.”

In its outline, the IRAS cites bitcoin, ether, litecoin, dash, monero, XRP and zcash as cryptocurrencies that meet its definition of a digital payment token designed to function as a medium of exchange.

The IRAS also excludes fiat-pegged crypto assets such as certain stablecoins from its definition of a digital payment token.

Under a section for cryptocurrency mining, the IRAS proposes that in most cases the new rules will exempt token rewards generated by mining, noting that:

“There is generally no sufficiently close nexus between the service provided by the miner to the persons whose transactions are verified, and the mined tokens that the miner received from the blockchain ecosystem. The parties paying the mined tokens are also not identifiable.”

It follows that if “a miner performs services to an identifiable party or parties, in return for a consideration, this constitutes a taxable supply of services,” according to the document.


  1. I was wondering if anyone knows what happened to Dimepiece LA celebrity streetwear brand? I seem to be unable to check out on Dimepiecela site. I have read in Vogue that they were acquired by a UK hedge fund for $50m. I’ve just bought the Dimepiece Winter Pom Pom Knit Cap from Amazon and totally love it xox

  2. I operate a vape shop web directory and we have had a posting from a vape store in the USA that additionally offers CBD products. A Calendar month later, PayPal has written to use to say that our account has been restricted and have requested us to remove PayPal as a payment method from our vape shop directory site. We do not retail CBD items such as CBD oil. We solely offer advertising and marketing solutions to CBD firms. I have looked into Holland & Barrett– the UK’s Major Wellness Store and if you take a close peek, you will witness that they sell a surprisingly comprehensive stable of CBD product lines, primarily CBD oil and they also happen to accept PayPal as a settlement solution. It seems that PayPal is applying double standards to different firms. As a result of this stipulation, I can no longer accept PayPal on my CBD-related internet site. This has restricted my payment choices and currently, I am intensely contingent on Cryptocurrency payments and straightforward bank transfers. I have consulted with a barrister from a Magic Circle law office in London and they stated that what PayPal is undertaking is completely not legal and inequitable as it should be applying a systematic standard to all companies. I am still to speak to one more lawyer from a US law practice in London to see what PayPal’s legal position is in the USA. Meanwhile, I would be extremely appreciative if anyone here at targetdomain could offer me with substitute payment processors/merchants that work with CBD firms.

Leave a Reply

Your email address will not be published.