Germany Ministry of Finance Says Not to Tax Bitcoin Purchases

[JefferyMusk]

According to the guidance, released Tuesday by the Ministry of Finance, Germany has said that they won’t tax Bitcoin users for consuming the cryptocurrency as a means of Payment.
Know More: Coinpedia

[nandibear]

According to the guidance, released Tuesday by the Ministry of Finance, Germany has said that they won’t tax Bitcoin users for consuming the cryptocurrency as a means of Payment.
Know More: Coinpedia

Hi Jeffery,

Please do not continue to spam the forum with one liners & link.

If you want to share your articles please provide a full excerpt and full citation. Moreover, make sure the post on appropriate board.

If you ignore the foregoing your posts may be moved to the trashcan and you could also be banned for spamming.

[grabberfish]

For the benefit of our readers:

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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.

Source: CoinTelegraph

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It would appear that the EU is starting to make movements towards some form of regulation in the member states. This will be interesting to watch as the various states argue over what can be done to control the growth of bitcoin. Germany and Malta seem to be taking a somewhat positive stance (so far) but there will be a push back from other stakeholders.

I am suspecting that political infighting should gain us some time before the bankers bring out the big guns.

[Keron]

I don't understand these taxes at all. Traders and miners are all taxed on cryptocurrency and they haven't got anything in return for that. People will simply refuse to do that kind of business from now on.