Response from my country's Ministry of Finance

I made a topic to Bitcointalk:
I also mentioned nubits there. The topic itself is as follows:

I made an information request to the Estonian Ministry of Finance regarding Bitcoin taxing. I brought up the issue that it is pointless to start any bitcoin selling business in Estonia since it treats virtual currencies as property and thus requires Value Added Tax. Estonian VAT is 20%. I stated that Estonians would simply buy their bitcoins from Bitstamp instead of using a local business because a local business would have to add 20% VAT to the price of the bitcoins sold.

Here’s a part of the reply I got from the Ministry of Finance:

The text says “Selling Bitcoins and NuBits on the Internet is handled as electronically provided service. [glow=yellow,2,300]Starting from the 1st of January 2015, all electronically provided services are taxed by the laws of the country where the service receiver is located.[/glow] Thus, taxing a service in the European Union does not depend on the country where the business is registered but instead it depends on the fact where the service receiver is located. A service receiver from outside the union is taxed by a 0% rate.

This means that Bitstamp and others must soon ask VAT accordingly to the location of their customer whenever you are buying bitcoins. Essentially, now could be the time to hoard as many bitcoins as possible without paying some crazy 20% over the market price. Alternatively, the whole EU could come to a conclusion that virtual currencies are to be VAT-exempt. If the latter happens, then I’d guess we have no problem.

By the way, I asked specifically about NuBits because it is the first virtual currency ever that is not volatile and is always priced 1 NBT = 1 USD. To me, it makes no sense to tax the sale of nubits with VAT if essentially nubits are dollars. However, the financial ministry answered that the law makes no difference whether the asset’s price is pegged to a certain monetary value or not, thus even nubits are currently taxed by VAT in Estonia. Things get more interesting when it comes to dividends paid on virtual currencies. For example, NuBit shareholders were paid 60000 peercoins yesterday as dividends for the first 2 months of success. I myself received 35$ worth of peercoins. I predict that taxing such gains will be another big problem for the lawmakers, since if I remember correctly — dividends are generally not taxed at all.

(the reply is all in Estonian and most of it is rather irrelevant in the context of Bitcoin’s price speculation)