Q: I have acquired a number of machines to mine Bitcoin; the intention is to mine the currency, retain for a period, and then sell. These machines are imported from China to the UK and my client has suffered import VAT. Is she sanctioned to VAT register and recover the VAT on these machines?
A: Bitcoin is the world’s first de-centralized digital currency and also known as a ‘cryptocurrency’.
Because cryptocurrencies are a relatively recent development, deciding the legal and regulatory status is ongoing.
Bitcoin operates independently of any bank or central authority; a peer-to-peer network controls the issue, processing, and verification of the cryptocurrency. Transactions are noted or recorded in a shared public database called a ‘block-chain’.