This sounds like it could be BIG:
https://www.coindesk.com/germany-considers-crypto-legal-equivalent-to-fiat-for-tax-purposes/But I am not sure of the exact meaning. Do they mean the "conversion" will be VAT exempt (as it is obvious it already is) or does it also means than when using BTC for buying services/goods no capital gains will be needed to be reported/paid? If so, up to which amount? Cofee? Huge TV? Lambo?
Anyone fluent in german that can understand the source document and post a more specific conclusion?
Basically states that for strictly payment purposes there's no VAT to be paid.
For mining purposes there's no tax because there's no "taxable event", as the block rewards and transaction fees are not a paid service (probably because the fees are variable and random) and the mining (which is defined as the solving of mathematical algorithms) is a voluntary action by the miner.
If a wallet provider charges fees they are subject to taxes in the event that the fees are charged within Germany.
Basically states that cryptocurrencies are equivalent to legal tender as long as they are strictly used as a means of payment. Not included in this are "game currencies".
Doesn't say anything about capital gains taxes, so I assume they're the same as before (that is whatever the tax rate is for short term holds, and tax free for long term holds of 12 months or longer).
If electricity prices in Europe were more reasonable that would pretty much invite mining operations into Germany... I kind of doubt that 10 times more expensive electricity would make up for virtual tax exemption.
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