VAT & Tax Issues   Stabilising the GALA exchange rate

As GALA is NOT money under EU & UK Law, there is no income tax payable for GALA payments to individuals. Normal VAT applies on sale of goods or services for GALA coins at current exchange rate but there is no VAT on sale of GALA coins (but capital gains tax will apply for individuals).

Acceptance by Councils and Large Organisations defines the minimum value. Public clarification by HMRC on the rate to be used for VAT calculation establishes a value. Active market making by the exchange company and ensuring sufficient coin supply is available will reduce price fluctuations.

Benefits for exporters Benefits for retailers

You may not be aware, but some countries have major problems releasing foreign exchange, so payments of goods & services by customers in these countries is very difficult. With GALA:

> Overseas entities can also mine GALA coins.

> This provides a low cost international payment scheme.

Interchangeability with Bitcoin and also allows payments by Bitcoin.

As technology has evolved, it is very easy to make and accept GALA and Bitcoin payments with a mobile phone, even street market traders!

> Mobile App also allows any retailer to take Bitcoin payments without concerns of exchange rate or sterling conversion.

> Option of getting payments instantly converted to sterling into their bank OR keep the balance in GALA on their devices or the Exchange’s cold store .

Why not use Bitcoin? GALA is still experimental

The GALA value is customised to the community needs whereas Bitcoin is driven by worldwide factors and politics. Bitcoin mining is now dominated by ASIC based mining consortia, whereas GALA will be open to anyone including individuals at home. GALA also uses more advanced cryptography than what was available when Bitcoin was launched in 2009.

GALA is an experimental new currency that is in active development. Although it becomes less experimental as usage grows, you should keep in mind that GALA is a new invention that is exploring ideas that have never been attempted before. As such, its future cannot be predicted by anyone.

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