Avalara recently introduced a Bitcoin module for its AvaTax compliance engine. The feature will enable the calculation and accounting of sales tax for Bitcoin transactions, allowing retailers, digital wallets, and other digital currency processors to calculate sales tax and VAT tax for Bitcoin transactions in real-time.
The move could create a smoother path to Bitcoin adoption for companies interested in accepting Bitcoin and conducting other transactions in the cryptocurrency.
AvaTax will calculate how much tax a company will owe in Bitcoin at the time it needs to pay in any jurisdiction, so it is possible for them to convert the right amount of government-backed currency at the right time for tax payments.
Security is also a blockchain benefit, he noted, on account of the encryption. The owner of data in the blockchain has a set of cryptographic keys that provide a form of proof for a transaction.
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