Germany Treads Lightly on Bitcoin Taxation

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Germany is taking a lead within European Union established economies, deciding upon slow regulation when it comes to the world’s most popular cryptocurrency, bitcoin. It will not tax the digital asset as a form of payment, miner rewards escape the sting as well, and even some exchanges will receive exemptions.   Also read: Bitcoin Futures Regulator Allows Employees to Trade Crypto Germany Slows on Taxing Bitcoin Bundesministerium der Finanzen, Germany’s Federal Ministry of Finance, issued a four page document outlining its tax regime regarding bitcoin, VAT treatment of Bitcoin and other so-called virtual currencies. Using a 2015 decision from the European Union Court of Justice on value added tax (VAT), the broader EU believes it can decide the fate of taxing bitcoin. Germany too is using it as a framework. Though filled with legalisms, the document seems to imply bitcoin as legal tender when a means of payment, thus exempting it from a typical usage tax. Interpreting usage of bitcoin “free of VAT…[the] use of Bitcoin is the use of conventional means of payment if it serves no purpose other than a pure means of payment serve,” the document defines. “The dedication of Bitcoin to the mere remuneration payment is therefore not controllable. When paying with Bitcoin, the fee is basically determined by the service provider the equivalent in the currency of the Member State in which the service takes place and to the time this performance is performed.” When taking bitcoin from the virtual world and into euros, for example…
Source: Germany Treads Lightly on Bitcoin Taxation

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