In Germany, Bitcoin will be considered as a legal tender when it comes to tax, as according to the German Ministry of Finance stated that cryptocurrency purchases will be treated just like fiat ones, hence they would only be subjected to the typical VAT norms.
According to the official document:
“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.”
According to the EU guidelines, the cryptocurrency conversion to fiat money and vice versa is categorized under “a supply of services”, and as a result any third party used for the exchange will not be taxed. The miners fall under the same category and therefore their rewards will not be taxed as well.
Alfred Horst, a banker based in Berlin says,
“This declaration by the authorities means 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 that 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.”
All in All, Bitcoin’s taxation is considered to be a positive step for cryptocurrency declaring that governments recognize its legitimate aspect. Imposing crypto taxation may lead to confidence come back in the market, resulting in a bull run shortly.