Germany Isn’t Going To Tax Bitcoin Purchasers
An announcement set by German Finance Ministry says, that the country isn’t going to tax Bitcoin users for applying cryptocurrencies as a payment method.
Besides that, converting Bitcoin into a fiat currency or vice versa the German authorities consider as a taxable miscellaneous benefit. According to the document, 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.
However, as per the EU ruling, the actual act of converting a cryptocurrency to fiat or vice versa is classified as a “supply of services,” and therefore a party acting as an intermediary for the exchange will not be taxed.
The document says, that payment fees sent to digital wallet providers or other services can likewise also subject for taxes. Miners who receive block rewards will not be taxed, as their services are considered to be voluntary.
The exchange operators, who make buy/sell transactions on Bitcoin in their own name as an intermediary will receive a tax exemption, though an exchange operating as a technical marketplace won’t receive any such exemption.
