VID Guidance on Cryptocurrency Transactions
VID Guidance on Cryptocurrency Transactions
With growing public interest in cryptocurrencies and investments, it is essential to understand how to properly and legally declare income from cryptocurrency transactions. On October 20, 2022, the Latvian State Revenue Service (Valsts ieņēmumu dienests, VID) issued a statement (No. 31.1/8.5.1/114882) addressing key aspects of planned cryptocurrency transactions by private individuals on cryptocurrency exchanges.
In this article, you will learn:
- When you are required to register as a self-employed person when engaging in cryptocurrency transactions.
- Whether you are obliged to register for VAT (Value Added Tax) if you trade cryptocurrencies.
- If capital gains tax is only applicable in cases of cryptocurrency conversion.
For detailed information and to ensure compliance with legal requirements, read the full article here
Stay informed and ensure that your cryptocurrency activities comply with VID regulations!
Svetlana Nesinova, Junior Tax Project Manager at AS "BDO Latvia"