Germany Won't Tax You for Buying Coffee With Bitcoin
Bitcoin will not tax as a way to pay users money to use Germany credits, the finance ministry said.
The guidelines published on Tuesday differ from the United States, where the Internal Revenue Service uses Bitcoin as a property for tax purposes - which means that if American buys coffee cups with Bitcoin, then technically sells the property and considers possible issues to get capital
Instead, according to a new document, Bitcoin will be treated as equivalent to the legal tender for tax purposes in Germany, when used as payment means.
Dr. Fenzene of Bundesmunistria provided Value Added Tax (VAT) based on the directive of the European Union Council of Justice of 2015.
During the concession for certain transactions, the court verdict makes Bitcoin tax an example for European countries.
Notably, the new German document cites his tax determination on a legal system to pay for CryptocoRempe:
"Virtual currency (cryptochrutualization, eg, bitcoin) has become equivalent to the payment of legal money, such as a contradictory contractual and so-called virtual currency that has been adopted as an instant means of payment."
For tax, this means Bitcoin converted into a coin currency or vice versa "a taxable miscellaneous benefit" When a product is purchased with Bitcoin, the price of Bitcoin will be applied during the transaction of an EU VAT directory, as the seller is documented, according to the document.
However, according to the EU regime, the actual work of transforming a cryptocurrence into a form of phayas or vice versa is classified as "service delivery" and hence a team working for exchange will not depend on taxation.
According to the document, payments made to digital wallet suppliers or other services can pay similarly.
Other aspects of the cryptocortal ecosystem will not be taxed. Those who receive the block awards will not have to do their duties, according to the document their services are considered voluntary.
Likewise, exchange operators will buy or sell Bitcoin tax exemptions as an intermediary in their own name, although a technical marketplace will not get any discount like an exchange operating system.
Okay I don't have words for this.
At the surface this seems small but if you understand their underlying assessment then you know how big this news is. This indicates a precedent in EU that could be followed and we just might see some momentum in governments understanding how to allow their people to use crypto.
We need to understand that it is not just people struggling to understand what cryptocurrencies are but it also the governments that are struggling o make sense of the situation. They want to ban it but they know that if they do they are going to be left behind in the dust.