Topic: Germany Won’t Tax Cryptocurrencies Used To Make Purchases - page 3. (Read 494 times)
This is amazing. I think it's because this will help fulfil the empty value that crypto retains with material goods. Very smart.
That is a good news for investors and cryptocurrencies users in Germany, And make people depends more on cryptocurrencies, The number of cryptocurrencies exchange will increase of course to make profits!
Both good and bad here.
The good news is that germany is adopting a somewhat deregulation stance in regard to bitcoin and crypto. This will benefit the crypto industry as taxes which often cripple and strangle businesses are not being implemented.
The bad news could be that recession and global economic slowdown are big enough concerns that germany dares not tamper with the fastest growing sector of finance in the hope that the value being created will help to alleviate any negative economic circumstances which may arise. These fears may already be making their presence known in the form of our recent DOW decline.
The good news is that germany is adopting a somewhat deregulation stance in regard to bitcoin and crypto. This will benefit the crypto industry as taxes which often cripple and strangle businesses are not being implemented.
The bad news could be that recession and global economic slowdown are big enough concerns that germany dares not tamper with the fastest growing sector of finance in the hope that the value being created will help to alleviate any negative economic circumstances which may arise. These fears may already be making their presence known in the form of our recent DOW decline.
It's good news for the investors in the German.They won't invested dollar in the illegal activity.Only draw back is paying tax,we are paying some dollars as a tax in paper money.When the taxation is implement all over the country,bitcoin will become a legal currency all over the world.
That's good news. I think now that similar legislation will be adopted in all EU countries. I do not know how the European cryptocurrency exchanges will work, but I am sure that now we will see an increase in their number. We'll have a choice. I think that the main task of the cryptocurrency is the destruction of the established monopolies. Everyone will benefit from it.
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.
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