Germany Won’t Tax Cryptocurrencies Used To Make Purchases - page 2.

Mometaskers

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Quote from: alyssa85 on March 04, 2018, 08:43:29 AM

But how would they know if someone was using it as a payment or for speculation? Do people have to keep receipts to prove they spent bitcoin as a payment for something?

If I were German I'd claim it was all payments and therefore not be eligible for any taxes on bitcoin at all...

I suppose they'd have establishments register a bitcoin address where they can receive payment from their customers in btc. Might be not as straightforward if it goes through another service that converts it to fiat (like when I pay in btc from my exchange wallet for my utilities).

jseverson

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Quote from: alyssa85 on March 04, 2018, 08:43:29 AM

But how would they know if someone was using it as a payment or for speculation? Do people have to keep receipts to prove they spent bitcoin as a payment for something?

If I were German I'd claim it was all payments and therefore not be eligible for any taxes on bitcoin at all...

You likely have to keep the receipts. I mean, you're free to declare that you spent 5 Bitcoins in the year on electronics and groceries, but should you be tagged for suspicious behavior, you're going to have to prove your claims. It's just like paying regular taxes; you need to be ready to prove that you have declared everything correctly because an audit is a possibility.

Barley Hertog

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Quote from: Lucius on March 04, 2018, 10:19:14 AM

.Some extra tax if you pay that TV with BTC would not make any sense for you because the overall price would be higher in relation to the payment in fiat.

I've just checked Overstock.com (they accept BTC). I haven't found any TVs but I've found a TV stand

It's $267.74 USD or 0.0241324 BTC. Current exchange rate is $11105 per BTC. So the BTC price is exactlty the same. Seller's tax is included already.

Lucius

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Quote from: Morderus on March 04, 2018, 09:36:12 AM

Quote from: Lucius on March 04, 2018, 09:26:14 AM

for me is logical that you not need to pay tax if you buy mobile phone or PC with BTC,but you will pay tax on capital gains if you are buying/selling cryptocurrency only with the intent to make a profit.

Why do you think that paying tax when buying smth isn't logical, globally?

I did not think that paying tax is not logical when buying something,I was thinking that when buying something with BTC we should not be additionally taxed only because we pay with BTC.In Europe we have value added tax (VAT) which is different in each country and it may be different for individual products.So when you buy let's say TV,you will pay some price-one part is going to seller,other part to manufacturer and third to the state in the form of VAT.Some extra tax if you pay that TV with BTC would not make any sense for you because the overall price would be higher in relation to the payment in fiat.

greensheep

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Good news, hoping that all EU countries will follow 'the leader'.
Here - Belgium - it's as always a grey zone.
Investing as a 'good house father policy' (no full time job) = no taxes
However considering it as a speculative character, going for price swings etc = 33 % taxes :-s
Grey zone as how to control? How to prove? ...?

amih

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this is certainly good news for the crypto currency community in the german state and this is a positive signal for the entire crypto market in the country. and this is, of course, very contrary to the tax system adopted in the United States of America which argues that it considers Bitcoin as a property that requires taxation as the principle applicable to property taxation. so I think of some policies and also regulations that are done by each country this is certainly for a purpose, especially in terms of economics for the better. so whatever decisions applied by the government of a country of course as a good citizen we must still obey it.

Morderus

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Quote from: Lucius on March 04, 2018, 09:26:14 AM

for me is logical that you not need to pay tax if you buy mobile phone or PC with BTC,but you will pay tax on capital gains if you are buying/selling cryptocurrency only with the intent to make a profit.

Why do you think that paying tax when buying smth isn't logical, globally?

Sir Cross

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This would be very advantageous for each crypto-user in the country. Having to pay taxes is a hassle and sometimes discouraging. It's a pain to have to pay some amount from your income which you have worked so hard to earn. Since it is now being treated as a capital gains tax, this is similar whenever you gain some revenue through stocks. That is how it is in my country and I hope that they would impose the same kind of regulation when it comes to cryptocurrencies.

Lucius

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Quote from: alyssa85 on March 04, 2018, 08:43:29 AM

But how would they know if someone was using it as a payment or for speculation? Do people have to keep receipts to prove they spent bitcoin as a payment for something?

If I were German I'd claim it was all payments and therefore not be eligible for any taxes on bitcoin at all...

In Germany tax payment on cryptocurrency is regulated for some time.If you buy BTC and hold it for 1 year or more and then sell-there will not be any tax on capital gains in that case.Also people will not pay any tax if they capital gain is bellow 600 EUR (I assume this applies to the annual period),so people there know how things stand.

I am not sure how they will decide when to people need to pay tax or not,but for me is logical that you not need to pay tax if you buy mobile phone or PC with BTC,but you will pay tax on capital gains if you are buying/selling cryptocurrency only with the intent to make a profit.

I hope others countries in EU will make similar decisions,but it will take time for that.

fokinlipat

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This is a really a good news and I think other countries should also follow this trend. Currently the governments are taking tax on crypto investments because:

1) Some of the governments have got greedy and thus they want to benefit from the increasing acceptance of bitcoins. They are seeing this as an opportunity to increase their yearly income.

2) Some are doing this so as to discourage the investors. They consider bitcoin investments as some type of scam which can harm the investors. Thus they have put huge taxes so that people do not invest money in bitcoins.

alyssa85

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But how would they know if someone was using it as a payment or for speculation? Do people have to keep receipts to prove they spent bitcoin as a payment for something?

If I were German I'd claim it was all payments and therefore not be eligible for any taxes on bitcoin at all...

tanxingwo1215

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Germany is one of the main countries in the eu!

Germany's attitude towards digital cryptographic currency has positive reference for other eu member states.

Digital cryptographic currency can have a good development in Europe, and it is changing European society!

debuni

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This could lead to big increase of crypto in EU because now you have to pay 10-40% (country depending) when you are converting to fiat.

Let's hope that now other EU members will follow the German example.

matuson

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The Germans never make rash decisions. I like that the legislation in respect of bitcoin has moved from a dead point. Perhaps a strong-willed decision has been made in the EU and European countries will set a trend in the crypto economy. Trump wanted an economic war, he'll get it. I'm not sure that America will be the winner.

Polipog

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The story basis is more on the good side of bitcoin users, however we don't know the real purpose of the german's government, but if we try to view the economic status of Germany's government, they already belong to economically high level compare to any other countries, and we are hoping that germany government will continue the full support of cryptocurrency operations in their country without any asking of taxes payments so that more and more countries would also followed.

Thanasis

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Quote from: Ctn on March 04, 2018, 07:28:59 AM

Tax exemption declared by the government would be always amazing thing to hear in first place. I mean people can earn as much as they want online and then go on spending them online or offline as the payment made like that way wont be taxed. So things will look like very cheap for them. But this has to be perfect system as people might just buy crypto currencies and then buy big properties thereof. This could be alarming later on as the rule stays that transaction made as crypto currency wont be tracked for the taxes. This way people might just get government out of money and economic collapse might just happen. But they might have thought through this one already. Hopefully. Otherwise its perfect news.

Yeah you are right if all the people adapts to the crypto currency payment then the government will go bankrupt which result collapse in their country.I think this is just a strategy by the government of Germany to encourage the people to use crypto currencies not just holding maybe later on they will implement the taxes for the crypto too.

linshuhow

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What is the rationale of levying a tax on payment? Although there may be tax on profits arising from trading BTC

Polipog

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The story basis is more on the good side of bitcoin users, however we don't know the real purpose of the german's government, but if we try to view the economic status of Germany's government, they already belong to economically high level compare to any other contries, and we are hoping that germany government will continue the full support of cryptocurrency operations in their country without any asking of taxes payments so that more and more countries would also followed.

Barley Hertog

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I suppose that all these tax exemptions will last until cryptocurrencies become a really global payment method. When you won't have to exchange BTC into fiat to buy smth anymore, countries will have to tax crypto transactions too. So, let's get our benefits while the rules are still quite liberal

Ctn

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Tax exemption declared by the government would be always amazing thing to hear in first place. I mean people can earn as much as they want online and then go on spending them online or offline as the payment made like that way wont be taxed. So things will look like very cheap for them. But this has to be perfect system as people might just buy crypto currencies and then buy big properties thereof. This could be alarming later on as the rule stays that transaction made as crypto currency wont be tracked for the taxes. This way people might just get government out of money and economic collapse might just happen. But they might have thought through this one already. Hopefully. Otherwise its perfect news.

Topic: Germany Won’t Tax Cryptocurrencies Used To Make Purchases - page 2. (Read 494 times)