Anyway, governments cant really apply taxes to bitcoin transactions since they are anonymous. If they are going to do this people are going to sell bitcoin for cash face to face and bitcoin will be seen as a bad thing after that will happen because people are going to sell bitcoin illegally
I dont think this law will remain the same because this way a lot of money can launder money through bitcoin. Also there are a lot people that earn big profits from mining or trading bitcoin and they dont have to pay any taxes. The number of this people is increasing everyday so that governments will lose some money on taxes rhat are not paid.
Topic: No need to pay tax if you buy using bitcoin in Germany (Read 267 times)
Even now we don't need to pay any taxes to the crypto to crypto transaction because it is anonymous and no one knows that we are using it.
read again!
it is not crypto to crypto transactions that the news is talking about it is crypto to goods. for example if you buy a phone or a camera or a car or a cup of coffee with bitcoin, you don't have to pay any additional taxes.
this will create a huge incentive for merchants to adopt bitcoin. and if you like to know the effects of it, look at Japan and last year's growth in number of merchants (lots of offline stores) in Japan accepting bitcoin.
Because news sources create a buzz about that.
Yep. 
Even now we don't need to pay any taxes to the crypto to crypto transaction because it is anonymous and no one knows that we are using it.But the problem is when we convert our bitcoin or other crypto into fiat it will be recorded in our bank then we need to pay taxes.So it means still taxable right from your statement.
That's not what the document is about. It's about VAT, not capital gains tax or income tax.1) Suppose we have a friend who does not fall under the tax bracket or say has no earnings at all. One can just transfer his bitcoins to his wallet and then he can withdrawn to his bank. Then give him some commissions and spend that cash. No need to pay any tax on that bitcoin profit.
Again, that's not what the document is about. Here you refer to income tax. The method you describe, almost for sure, is illegal because your intention is to evade taxes. If you do that several times or for big amounts, it's almost sure that they'll catch you.
Even now we don't need to pay any taxes to the crypto to crypto transaction because it is anonymous and no one knows that we are using it.But the problem is when we convert our bitcoin or other crypto into fiat it will be recorded in our bank then we need to pay taxes.So it means still taxable right from your statement.
This is really very confusing and can be abused in a number of ways:
1) Suppose we have a friend who does not fall under the tax bracket or say has no earnings at all. One can just transfer his bitcoins to his wallet and then he can withdrawn to his bank. Then give him some commissions and spend that cash. No need to pay any tax on that bitcoin profit.
2) If you are earning huge amount of money, you will need a number of friends to replicate the above process.
One suggestion is to choose those friends wisely as they may run away with the whole money transferred.
I don't understand why this document is seen as some spectacular good news. It's the same policy Germany and most states of the world follow for years.
Because news sources create a buzz about that. They have to find everyday new story to put out there for other people to find their website interesting and to come back to it often. This is not the first and certainly last news/post that we are going to see popup that it is not that much meaningful for huge hype to be created around it and create some talk moments about certain topic.
Although when you have something like this at some low levels it shows that countries are interested in crypto which is a plus and thus a good thing, no matter if they are applying this in practice but this time "they said it publicly".
It really nice to hear that Germany started to use bitcoin with out tax. I believed if this will happen all over the world the price of bitcoin will rise and more people want to use bitcoin as payment rather than using Fiat
#Datarius
#Datarius
Certainly every country has its own rules of regulation in regards to bitcoin it depends on the country's policy, if in my country bitcoin transactions are not taxed, it is very good and profitable for bitcoin users in my country.
Yes, In the most of countries bitcoin transaction is not taxed because they have not officially accept bitcoin.
It is really weird that a government officially announce that they don't want bitcoin.
Certainly every country has its own rules of regulation in regards to bitcoin it depends on the country's policy, if in my country bitcoin transactions are not taxed, it is very good and profitable for bitcoin users in my country.
So if we use only crypto they can tax us only when we finally do the exit crypto transaction to us (cash out with crypto, not fiat). If I pay for the car or apples they just simply add the tax on those items and that's it. But there would be no tax on my yearly income. They can't trace my net worth.
Germanies Taxation Burocracy is never able to handle Bitcoin its slow speed and high tx costs.
i bet they are doing that because they have no choice.
i bet they are doing that because they have no choice.
I strongly agree to buy something with bitcoin not in taxes because all transactions on bitcoin like sell bitcoin, buy bitcoin and exchange bitcoin into real money is always in charge. so if you buy something also in taxes I think we cost too much from any transaction with bitcoin, things like this can cause bitcoin prices to fall because the bitcoin users are getting reduced.
So its tax free if you use bitcoin for purchase in germany, and that's sounds good for btc, it seems they encourage the German to use bitcoin and by these means they are trying to use bitcoin as regular currency, and this might come up to have a better regulation for btc as real money.
The ministry of finance has declared that bitcoin transactions will not be taxed!
Instead, Germany will regard bitcoin as the equivalent to legal tender for tax purposes when used as a means of payment, according to a new document.
For tax purposes, this means that converting bitcoin into a fiat currency or vice versa is "a taxable miscellaneous benefit." When a buyer of goods pays with bitcoin, an article of the EU's VAT Directive will be applied to the price of bitcoin at the time of the transaction, as documented by the seller, according to the document.
hoping this will happen in our country they using 10$ or more as a transaction fee or tax. for me its not fair to make that kinda big transaction fee because we dont have enought money to shoulder that big transaction fee. Instead, Germany will regard bitcoin as the equivalent to legal tender for tax purposes when used as a means of payment, according to a new document.
For tax purposes, this means that converting bitcoin into a fiat currency or vice versa is "a taxable miscellaneous benefit." When a buyer of goods pays with bitcoin, an article of the EU's VAT Directive will be applied to the price of bitcoin at the time of the transaction, as documented by the seller, according to the document.
Just wonder what will they do once people start to use bitcoin at mass level. It is good that it is not taxable but this really could hurt them in the long run or they will have to add another sources of income in future. Now it is still used in small quantities and this is why I do think it doesn't matter for them to try to tax it at this point, although it is nice to see that from this view Germany is making crypto "legal" if we take the info that they are not taxing which means you can buy stuff with it.
I agree with you. Governments are still seeing what to do with it. The ones not too corrupt are still finding ways to come up with legislations that can benefit the country. Since it's a new technology in comparison and seeing Bitcoin as a trustable currency worldwide is even more new. It will take time to see how people behave with it.
Later in time they will have to seriously think if they will tax it when a lot of people use it and a lot of countries start doing it. It's a nice stand to start though, from my point of view.
I applaud the government of Germany for taking the initiative and supporting Bitcoin during this stage.
Super good news! Positive signals came from Austria about a week ago, and now from Germany - bravo!
This week forms such a positive crypto background!
Green market soon?
This week forms such a positive crypto background!
Green market soon?
Sad.
I have to go to Germany just to do that kind of transaction.
I hope this goes worldwide as I am expecting to try and buy something with bitcoin and not just other crypto currencies and ICO.
Something that can be physically feel and be seen with my own eyes.
Does this companies do shipping?
I have to go to Germany just to do that kind of transaction.
I hope this goes worldwide as I am expecting to try and buy something with bitcoin and not just other crypto currencies and ICO.
Something that can be physically feel and be seen with my own eyes.
Does this companies do shipping?
It may look like good news from the most important country in Europe. Most countries will not ban cryptocurrencies, but they want regulations. The main reason is taxes. Germany will only charge VAT on regular small transactions, but I'm not so sure about that. Holding large amounts of cryptocurrencies will be seen as speculation and then you'll be taxed on your profits. In some countries that could be 50%. After the G20 discussion on cryptocurrencies we'll know a bit more.
thatš very interesting news, thank you for sharing it. Wondering how it develope in whole EU.
great news, time to move team to Germany 
I don't understand why this document is seen as some spectacular good news. It's the same policy Germany and most states of the world follow for years.
It's only talking about VAT (not capital gains tax or similar). VAT normally is charged only once in the process from the production of a good or service to the final consumption. An example: If you buy a car, then the manufacturers don't have to pay VAT to their suppliers. The person that must pay VAT is the final consumer.
So if you buy a car with Bitcoin in Germany, you must pay VAT - but only once. According to this guidance you won't get taxed twice because you use Bitcoin, and you won't get taxed when you buy Bitcoin (for fiat) to buy the car.
There were some countries that considered VAT for commercial Bitcoin sellers (some years ago there was also a legal dispute in Germany, but it touched only very big traders that were registered as companies, until the EU court decision ended it) but it's the absolute minority.
Maybe the document is more relevant for miners, because it clarifies that they must never pay VAT.
BTW: the original document is here.
It's only talking about VAT (not capital gains tax or similar). VAT normally is charged only once in the process from the production of a good or service to the final consumption. An example: If you buy a car, then the manufacturers don't have to pay VAT to their suppliers. The person that must pay VAT is the final consumer.
So if you buy a car with Bitcoin in Germany, you must pay VAT - but only once. According to this guidance you won't get taxed twice because you use Bitcoin, and you won't get taxed when you buy Bitcoin (for fiat) to buy the car.
There were some countries that considered VAT for commercial Bitcoin sellers (some years ago there was also a legal dispute in Germany, but it touched only very big traders that were registered as companies, until the EU court decision ended it) but it's the absolute minority.
Maybe the document is more relevant for miners, because it clarifies that they must never pay VAT.
BTW: the original document is here.
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