Does this apply to every single thing you buy? Bitcoin in Germany is tax exempt if you hold for over a year anyway, but buying a house with Bitcoin is certainly an awful lot of tax dodged compared to other countries.
The US has been proposing exemptions up to $600 expenditures but this is a whole extra league. Wish I was a German.
Topic: Germany Approves Cryptocurrency As Legal Means Of Payment - page 4. (Read 593 times)
German federal authorities issued its decision not to impose a tax on purchases using Bitcoin and other cryptocurrencies on February 27, citing the European Court's decision in 2015, which sets a precedent for all EU members.
I can add that the concrete decision of the European Court of Human Rights is a source of law and is binding for all states that signed the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950. This is 41 states in Europe and in general in the world. These states will be obliged to amend their laws to ensure that their laws comply with a specific decision of the European Court of Human Rights. Thus, this judgment is crucial for the crypto currency, since these countries will be obliged not only to recognize the crypto currency as a legitimate means of payment, but also to free from taxation operations on converting crypto currency to fiat and vice versa.
You probably don't know the law. Court of human rights is based in Strasbourg and has no relationship to the cryptocurrency. I agree that any decision aimed at simplifying the rules of cryptocurrency use is a relief for us. But this will be followed by an attempt to regulate this market. This could be a problem.
The German Finance Ministry will exempt taxes from bitcoin and other cryptocurrency transactions that are used as a means of payment.
I am very happy to hear this. In some ways it is inevitable.
I am very happy to hear this. In some ways it is inevitable.
Germany is one of the leaders in Europe and world when it comes to economics. This new is very encouraging and we could see others follow these steps.
I'm very happy to hear this. In some way it is inevitable.
I'm very happy to hear this. In some way it is inevitable.
I can add that the concrete decision of the European Court of Human Rights is a source of law and is binding for all states that signed the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950. This is 41 states in Europe and in general in the world. These states will be obliged to amend their laws to ensure that their laws comply with a specific decision of the European Court of Human Rights. Thus, this judgment is crucial for the crypto currency, since these countries will be obliged not only to recognize the crypto currency as a legitimate means of payment, but also to free from taxation operations on converting crypto currency to fiat and vice versa.
Hi Community not sure if you have heard about the following so thought I would share:
Germany Approves Cryptocurrency As Legal Means Of Payment
The German Ministry Of Finance would exempt tax payment from bitcoin and other cryptocurrency transactions used as a means of payment.
On Tuesday Feb 27th, the German Federal Authority issued a statement announcing its decision to consider purchases with bitcoin and other cryptocurrencies as tax exempt, citing the 2015 judgement of the European Court, which set a precedent for all members of the European Union.
With the newly introduced tax laws, Germany will regard cryptocurrency as equivalent to legal tender when used as a means of payment. The German Tax statement reads:
"Virtual Currencies (Cryptocurrencies, e.g. Bitcoin) become the equivalent to legal means of payment, insofar as these so-called virtual currencies of those involved in the transaction as an alternative contractual and immediate means of payment have been accepted"
According to EU's directives, a conversion from crypto to fiat or vice versa is classified as "other taxable services". This means that a tax exemption benefit shall be implemented for transactions that involve exchanging cryptocurrencies to fiat currency and vice versa.
Under this provision, cryptocurrency exchanges operating in the country can also benefit from tax exemptions acting as intermediaries for exchange transactions. The court's ruling also states that the minor's fees will not be taxed as their services are 'voluntary' under these tax laws.
These set guidelines by the German Ministry Of Finance are in contrast with the US government stance on cryptocurrency, where the Internal Revenue Service (IRS) considers Bitcoin as property and therefore subject to property tax.
Hope you found my post useful.
Merit
Germany Approves Cryptocurrency As Legal Means Of Payment
The German Ministry Of Finance would exempt tax payment from bitcoin and other cryptocurrency transactions used as a means of payment.
On Tuesday Feb 27th, the German Federal Authority issued a statement announcing its decision to consider purchases with bitcoin and other cryptocurrencies as tax exempt, citing the 2015 judgement of the European Court, which set a precedent for all members of the European Union.
With the newly introduced tax laws, Germany will regard cryptocurrency as equivalent to legal tender when used as a means of payment. The German Tax statement reads:
"Virtual Currencies (Cryptocurrencies, e.g. Bitcoin) become the equivalent to legal means of payment, insofar as these so-called virtual currencies of those involved in the transaction as an alternative contractual and immediate means of payment have been accepted"
According to EU's directives, a conversion from crypto to fiat or vice versa is classified as "other taxable services". This means that a tax exemption benefit shall be implemented for transactions that involve exchanging cryptocurrencies to fiat currency and vice versa.
Under this provision, cryptocurrency exchanges operating in the country can also benefit from tax exemptions acting as intermediaries for exchange transactions. The court's ruling also states that the minor's fees will not be taxed as their services are 'voluntary' under these tax laws.
These set guidelines by the German Ministry Of Finance are in contrast with the US government stance on cryptocurrency, where the Internal Revenue Service (IRS) considers Bitcoin as property and therefore subject to property tax.
Hope you found my post useful.
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