The German Federal Ministry of Finance exempts citizens from paying taxes if they use for payment Bitcoin
The court justified its tax decision by stating that it considers cryptocurrency for legal tender:
” So-called virtual currencies ( kryptowaluty , such as Bitcoin ) are considered equally legitimate means of payment in so far 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 purpose other than to use as a means of payment ”
According to the decision, conversion from crypto on fiat or vice versa is classified as ” other taxable services “. Therefore, a party that acts as an intermediary for this exchange will not be taxed. According to this provision, exchange operators kryptowalutowych they may also be exempt from paying tax, ” if they buy and sell Bitcoin as an intermediary in his own name ”
The court’s decision also states that mining fees will not be taxed because they are paid on a voluntary basis.
These guidelines distinguish Germany from the United States in which Internal Revenue Service ( IRS ) treat Bitcoin as a property, which means that every purchase using Bitcoin it is technically regarded as the sale of real estate and therefore subject to capital gains tax.