Topic: Germany Won’t Tax Cryptocurrencies Used To Make Purchases (Read 494 times)
That's good news for the investors in Germany.
hope this to be implemented in my country too, as i have hopes that cryptos will be a daily use in our lives. soon countries will embrace fiatless economy
That's good news,similar legislation will be adopted in all EU countries.The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of payment.But for sure that now we will see an increase in their number.
This is good. A lot of government has been making this leap for bitcoin. This will all the more promote the use of bitcoin as a currency. I hope all other countries are going to follow their lead. Europe has been in the verge of welcoming the cryptocurrency in a way of promoting it to be used by their people. I hope the US will folllow their lead and stop sniffing like a dog just to tax anyone who owns bitcoin or any other crypto.
If so, maybe the Crypto market is going to fade in Germany, in my opinion we should extend our arms to the Crypto market to come to this world, even though they have many disadvantages. Their benefits are great.
The German Federal Ministry of Finances considers Bitcoin as tax-exempt so long as it is used as a means of payment, Cointelegraph auf Deutsch reported Thursday, March 1.
The German federal authority published its decision to not subject purchases with Bitcoin and other cryptocurrency to taxes on Feb. 27, citing the European Court’s 2015 decision, which set a precedent for all members of the European Union.
The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of payment:
So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”
According to the decision, a conversion from crypto to fiat or vice versa is classified as “other taxable services”. Therefore, a party that is acting as an intermediary for this exchange will not be taxed. Under this provision, operators of crypto exchanges can also get tax exemptions, “if they complete the purchase and sale of Bitcoin as an intermediary on their own behalf.”
The court decision also notes that miner fees will not be taxed, since they are paid on a voluntary basis.
These guidelines distinguish Germany from the US where The Internal Revenue Service (IRS) treats Bitcoin like property, meaning that each purchase using Bitcoin is technically considered to be a sale of property and is, therefore, subject to capital gains tax.
Thats still scary.Even though Germany is a rich country, still tax are a very useful fund for a country specially for the developments. But since they arent threatening people who uses bitcoin for tax evasion, they were in good. The German federal authority published its decision to not subject purchases with Bitcoin and other cryptocurrency to taxes on Feb. 27, citing the European Court’s 2015 decision, which set a precedent for all members of the European Union.
The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of payment:
So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”
According to the decision, a conversion from crypto to fiat or vice versa is classified as “other taxable services”. Therefore, a party that is acting as an intermediary for this exchange will not be taxed. Under this provision, operators of crypto exchanges can also get tax exemptions, “if they complete the purchase and sale of Bitcoin as an intermediary on their own behalf.”
The court decision also notes that miner fees will not be taxed, since they are paid on a voluntary basis.
These guidelines distinguish Germany from the US where The Internal Revenue Service (IRS) treats Bitcoin like property, meaning that each purchase using Bitcoin is technically considered to be a sale of property and is, therefore, subject to capital gains tax.
The German Federal Ministry of Finances considers Bitcoin as tax-exempt so long as it is used as a means of payment, Cointelegraph auf Deutsch reported Thursday, March 1.
The German federal authority published its decision to not subject purchases with Bitcoin and other cryptocurrency to taxes on Feb. 27, citing the European Court’s 2015 decision, which set a precedent for all members of the European Union.
The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of payment:
So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”
According to the decision, a conversion from crypto to fiat or vice versa is classified as “other taxable services”. Therefore, a party that is acting as an intermediary for this exchange will not be taxed. Under this provision, operators of crypto exchanges can also get tax exemptions, “if they complete the purchase and sale of Bitcoin as an intermediary on their own behalf.”
The court decision also notes that miner fees will not be taxed, since they are paid on a voluntary basis.
These guidelines distinguish Germany from the US where The Internal Revenue Service (IRS) treats Bitcoin like property, meaning that each purchase using Bitcoin is technically considered to be a sale of property and is, therefore, subject to capital gains tax.
This is really a good news to hear , other countries like US and south Korea are trying to find a ways through regulators on how to collect taxes in any transactions done by a virtual accounts , but not in Germany because there finance people are the one deciding that all crypto transactions are exempted on tax , it's really sound good. The German federal authority published its decision to not subject purchases with Bitcoin and other cryptocurrency to taxes on Feb. 27, citing the European Court’s 2015 decision, which set a precedent for all members of the European Union.
The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of payment:
So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”
According to the decision, a conversion from crypto to fiat or vice versa is classified as “other taxable services”. Therefore, a party that is acting as an intermediary for this exchange will not be taxed. Under this provision, operators of crypto exchanges can also get tax exemptions, “if they complete the purchase and sale of Bitcoin as an intermediary on their own behalf.”
The court decision also notes that miner fees will not be taxed, since they are paid on a voluntary basis.
These guidelines distinguish Germany from the US where The Internal Revenue Service (IRS) treats Bitcoin like property, meaning that each purchase using Bitcoin is technically considered to be a sale of property and is, therefore, subject to capital gains tax.
Makes me want to move to Germany just so that I can trade with my cryptos freely. Bold move for Germany as without taxing bitcoin transactions they may be losing on much needed tax money to further improve their country. Kudos to them.
This is great initiation on bitcoin's approval on the german country. This is a good news specially for those who uses bitcoin as a payment or currency to buy goods/products or services. Other country should do the same as german country did because they do not own bitcoins even regulating it is not because of them. I hope our country will do it next and prove that they really want to have a progressive country.
https://www.coindesk.com/germany-considers-crypto-legal-equivalent-to-fiat-for-tax-purposes/
Its a welcome but strange decision.
They are recognising bitcoin for what it was designed to do - a payment system
but they realise that at the moment bitcoin and crypto are mostly used as investment tools and not for purchasing goods/services
It kind of looks like they are encouraging the use of it but are going to catch you with taxes when converting to FIAT.
Its a welcome but strange decision.
They are recognising bitcoin for what it was designed to do - a payment system
but they realise that at the moment bitcoin and crypto are mostly used as investment tools and not for purchasing goods/services
It kind of looks like they are encouraging the use of it but are going to catch you with taxes when converting to FIAT.
This is pretty much ideal news for Bitcoin and cryptocurrencies in general as countries are pushing forward to make them exempted from taxes. Its time for the other European Union countries to step up and follow Germany's stance here which would make EU a tax-free haven for people using cryptocurrency for payments.
Yes this is good news, I read it a few days ago and was happy with that. I think soon many countries in Europe and the world will such laws as bitcoin has the right to exist and be used and is not taxed because we all want.
European countries are developing in this field too. But unlike Asian countries, here we are continuously lacking in this race as our governments have strictly bans bitcoins to be used. We are not allowed to trade in them, nor any sort of investment. May God make them happier that they only allowed us to work here? It is unofficial still, but they know it and they are not stopping us from this.
Yes this is good news, I read it a few days ago and was happy with that. I think soon many countries in Europe and the world will such laws as bitcoin has the right to exist and be used and is not taxed because we all want.
The government will never give up taxes. You do not pay VAT when buying bitcoin. What's so surprising? VAT is paid only by enterprises. But this money they take from us. When you buy goods after the exchange of bitcoins for Fiat you pay VAT in each store. If you do not buy anything you will pay income tax. You can't hide from taxes by legal means.
Though, if I am a freelancer and get paid with cryptocurrency, I don't pay income tax.
The government will never give up taxes. You do not pay VAT when buying bitcoin. What's so surprising? VAT is paid only by enterprises. But this money they take from us. When you buy goods after the exchange of bitcoins for Fiat you pay VAT in each store. If you do not buy anything you will pay income tax. You can't hide from taxes by legal means.
The German Federal Ministry of Finances considers Bitcoin as tax-exempt so long as it is used as a means of payment, Cointelegraph auf Deutsch reported Thursday, March 1.
The German federal authority published its decision to not subject purchases with Bitcoin and other cryptocurrency to taxes on Feb. 27, citing the European Court’s 2015 decision, which set a precedent for all members of the European Union.
The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of payment:
So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”
According to the decision, a conversion from crypto to fiat or vice versa is classified as “other taxable services”. Therefore, a party that is acting as an intermediary for this exchange will not be taxed. Under this provision, operators of crypto exchanges can also get tax exemptions, “if they complete the purchase and sale of Bitcoin as an intermediary on their own behalf.”
The court decision also notes that miner fees will not be taxed, since they are paid on a voluntary basis.
These guidelines distinguish Germany from the US where The Internal Revenue Service (IRS) treats Bitcoin like property, meaning that each purchase using Bitcoin is technically considered to be a sale of property and is, therefore, subject to capital gains tax.
The German federal authority published its decision to not subject purchases with Bitcoin and other cryptocurrency to taxes on Feb. 27, citing the European Court’s 2015 decision, which set a precedent for all members of the European Union.
The Court justified its taxing decision by stating that it considers cryptocurrency as a legal means of payment:
So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”
According to the decision, a conversion from crypto to fiat or vice versa is classified as “other taxable services”. Therefore, a party that is acting as an intermediary for this exchange will not be taxed. Under this provision, operators of crypto exchanges can also get tax exemptions, “if they complete the purchase and sale of Bitcoin as an intermediary on their own behalf.”
The court decision also notes that miner fees will not be taxed, since they are paid on a voluntary basis.
These guidelines distinguish Germany from the US where The Internal Revenue Service (IRS) treats Bitcoin like property, meaning that each purchase using Bitcoin is technically considered to be a sale of property and is, therefore, subject to capital gains tax.
On the first place the government should really not tax cryptocurrencies since they do not own it. People who uses cryptocurrencies as payment have a good critical thinking that make them better than others in terms of budgeting.
Well this is pretty huge. Has anyone bought anything of relevance in Germany? I would like to see someone buying a car, or even better, buying a house, with 0 tax if they paid on bitcoin.
I have seen people buying real estate already with bitcoin in other countries, and now for anyone that has a decent amount of bitcoins, buying real estate in germany is very attractive they are going to be able to legally avoid taxes...
Of course, if you didn't pay taxes in increase of capital, you still don't need to pay these as soon as you use bitcoin as payment? it's pretty confusing.
I have seen people buying real estate already with bitcoin in other countries, and now for anyone that has a decent amount of bitcoins, buying real estate in germany is very attractive they are going to be able to legally avoid taxes...
Of course, if you didn't pay taxes in increase of capital, you still don't need to pay these as soon as you use bitcoin as payment? it's pretty confusing.
Yeah, and the one that wrote the article isn't making things easier.
First, there will be no taxation when you buy something with cryptos, one legal reason is because in the EU you still pay VAT on purchases.
But people that believe they will escape capital gains buy buying property they forget that this is taxed different from the US. You will still taxes on the profit you make when exchanging them to euros, but not on the transfer.
There was a passage that lead to this mess
Quote
When taking bitcoin from the virtual world and into euros, for example – government paper – then this would be still not be a taxable event, the document implies. This is due to the premise of bitcoin being legal tender. Bitcoin purchases per se will be subject to VAT, as are all such transactions for businesses. Service fees paid to digital wallets are also subject to tax.
There will be no VAT on euro>BTC, this doesn't mean you're going to avoid taxes on profit you have made.
This will make some Tzumany waves thru Europe. I am glad that the Germans are open minded and realizes the importance of cryptocurrency.
Well this is pretty huge. Has anyone bought anything of relevance in Germany? I would like to see someone buying a car, or even better, buying a house, with 0 tax if they paid on bitcoin.
I have seen people buying real estate already with bitcoin in other countries, and now for anyone that has a decent amount of bitcoins, buying real estate in germany is very attractive they are going to be able to legally avoid taxes...
Of course, if you didn't pay taxes in increase of capital, you still don't need to pay these as soon as you use bitcoin as payment? it's pretty confusing.
I have seen people buying real estate already with bitcoin in other countries, and now for anyone that has a decent amount of bitcoins, buying real estate in germany is very attractive they are going to be able to legally avoid taxes...
Of course, if you didn't pay taxes in increase of capital, you still don't need to pay these as soon as you use bitcoin as payment? it's pretty confusing.
This is a great news for the crypto currency users who are willing to spend their cryptos without converting them into fiat.I hope this will convince other countries also do the same if it happens then crypto currencies demand will highly increase.
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