Bitcoin Forum

Hi guys, I'm still stuck in the newbie section but I have a question I want to ask, which I didn't find in the tax section.

Say I'm a freelance in Europe that runs a web service for trading BTC through mtgox.

How and how much do I have to pay in taxes if :
    -  The users of my service pay me in bitcoins only (monthly fee)
    -  The users of my service pay me in $
    -  The users of my service pay me in €


Thank you in advance

Your local tax authority will not care whether you get paid in BTC, USD, EUR or any other currency, nor whether you sell it as a subscription or not. They will want to know the prices of the goods and services you sell, how much revenue you generate, how much income you receive etc (nominated in local legal tender) and tax you as usual.

don´t pay any taxes, that will only encourage them to oppress us more ;)

Just pay your taxes from money you receive on your bank account. If you keep $ and not converting it to €, there are annual average conversion rates made public with your central bank. It works for me.

Thank you all!

It depends on what you want.
As long you have the money in the chain is secure from any tax but if you withdraw your profit in fiat you are eligible for taxes.
You should convert in fiat only what you really need if you have a business running in bitcoin and you want to save tax.
If you want to pay as much tax as possible than convert it all in fiat.

Please dont be offended, but this simply isnt true. The tax authorities will not care whether you change from BTC to fiat or not, and depending on the context it can be more or less easy for them to figure out that you are doing something and not telling them about it. They actually dont even need to figure out what that is or how much you are making from it, they can just decide on an arbitrary amount and prosecute you for not having paid that.

If you want make money from selling bitcoin goods and services and not pay taxes, you still ought to report some income that is feasible compared to your living expenses in order to keep the tax authorities happy. You also need to set up some way of actually spending and withdrawing the money you make, like e.g. a no-name card.

And I thought one of the points of BTC was to get out of paying taxes...

You dont have to use BTC to get out of paying taxes. The thing about any such venture however is that tax authorities will still want to know how you finance yourself and may arbitrarily prosecute you for withholding taxes even without knowing how much or what youve been doing if your lifestyle doesnt add up with what you report. I know a lot of idiots who have reported no income and then got killed by the tax authorities, even though they had no way of knowing exactly how much had been withheld or how the money had been earned.