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Bitcoin payments not taxable in Germany

Aditya Dey

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Germany the new Bitcoin Haven
Source: Pixabay

Bitcoin will be viewed as equivalent to a legal tender when it comes to tax in Germany. The German Ministry of Finance recently declared that it would treat cryptocurrency purchases just like fiat purchases, hence would only be subject to the standard VAT norms.

The official document read,

“Virtual currencies (cryptocurrencies, e.g., Bitcoin) become the equivalent to legal means of payment, insofar as these so-called virtual currencies of those involved in the transaction as an alternative contractual and immediate means of payment have been accepted”

As per the EU ruling, the conversion of a cryptocurrency to a fiat and vice versa is categorized under “a supply of services”, and therefore any third party used for the exchange will not be taxed. Miners also fall under the same category and so their mining rewards will also not be taxed.

Alfred Horst, a banker based in Berlin says,

“This declaration by the authorities mean that the adoption of Bitcoin is encouraged. It looks like the government wants to streamline cryptocurrencies and want actual use cases.”

Alan Lambert, a blockchain believer says,



For every country that attempts to make things difficult for Bitcoin, there will be a country who will do the opposite. Think of tax havens for example. That is why banks and governments will have to embrace the technology eventually. It cannot be stopped.”

Jared, a market speculator based in the Middle East suggested,

“Honestly since most of the world is run on overinflated valuations these days, why not just tax Bitcoin and stock trades at like 5% per transaction and call that the way to pay our deficit. It’d help cool down the insane shark feed of buying/selling that drives inflation anyway”

Taxation of Bitcoin and other cryptocurrencies is most likely a good thing as this shows that the governments are identifying these virtual currencies as something legitimate. This will bring back confidence in the cryptocurrency market, hopefully resulting in a bull run.





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Aditya Dey is a full-time member of the AMBCrypto's News Reporting team. He is currently pursuing Economics at O. P Jindal Global University. Researching about Blockchain, its technology, and the cryptocurrency space is his passion. He currently does not hold any value in any cryptocurrency or its projects.

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Bitcoin

Bitcoin [BTC] is still going to $100,000, claims Heisenberg Capital’s Max Keiser

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'Bitcoin is still going to $100,000', says Max Keiser
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CNBC’s Crypto Trader Ran NeuNer, spoke to Max Keiser, Co-founder of Heisenberg Capital on the sidelines of the Magical Crypto Conference and discussed Bitcoin’s current trends.

Keiser said that he was bullish on Bitcoin in the long term, adding that he would be sticking by his “$100,000” prediction for Bitcoin. He stated,

“I never stopped make price prediction… I said it [Bitcoin] was going to a hundred thousand dollars and it was only a dollar and I said that all publicly… it is still going to a hundred thousand dollars”

He added that the timing of when Bitcoin would reach the mark was not important, but that it would outperform every other asset over the next 15 years. Additionally, he said that timing was only for people who were waiting to buy crypto at a better price and “that is a bad way to approach crypto.”

Keiser displayed his enthusiasm for crypto, commenting that, “Stack Satoshis… Stack SATs… you should be stacking SATs.” Giving his opinion on Bitcoin’s recent rally, Keiser said,



“I think that it goes back to when Federal Reserve issued a statement saying that they’re moving the policy to permanent quantitative easing… which means money printing without end. As you know Bitcoin is hard money, like gold, and it is going to respond well to hyperinflation and hyper-money printing.”

Further, Keiser claimed that Bitcoin bottomed when the Federal Reserve announced this a few weeks ago and that this was due to a couple of reasons. The first being Bitcoin’s upcoming halving which highlights the scarcity of Bitcoin. According to Keiser, the second reason was that the sellers were exhausted. All the above reasons, in totality, contributed to Bitcoin’s price rise, claimed Keiser.

Since Bitcoin has already proven itself as a store of value, Keiser remarked that it would be best to concentrate on Lightning Network, a layer-two scalability solution for Bitcoin and improve it as a medium of exchange.





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