Posted by ddnow on 05/16/09

Since the Icelandic Krona recently lost about 60% of its value, I think the Icelandic people would be more inclined than before the collapse to start using gold or silver or another material for trade. Would the VAT apply to both sides of a transaction, thereby making commodity trade unworkable? 

In a US state without a sales tax such as Oregon could people in that state use gold or silver to trade and avoid any tax consequences? In these states, is barter tax free?

Thanks.

Posted 05/16/09 Mike in Virginia Fredericksburg, VA

There would be central government tax consequences. The IRS is very insistent on taxing barter transactions that they find out about. Ditto for transactions involving commodities.