Because news sources create a buzz about that.
Yep.
Although when you have something like this at some low levels it shows that countries are interested in crypto which is a plus and thus a good thing, no matter if they are applying this in practice but this time "they said it publicly".
Here I agree. There was a discussion in 2014 if VAT could be applied to Bitcoin purchases from commercial sellers (like if it was play money), even if it was against German law (you never shall be taxed twice) and one German tax office in the city of Bonn some months ago wanted to tax a trader because they had a very unfriendly attitude regarding cryptocurrencies. This was clearly illegal, but the trader would have to go to court to clarify that ...
Now we have an official document, and this kind of bureaucratic abuse isn't possible anymore. So it's
good news without doubt - but many posters of this thread think it's
spectacular news, and it isn't.
Even now we don't need to pay any taxes to the crypto to crypto transaction because it is anonymous and no one knows that we are using it.But the problem is when we convert our bitcoin or other crypto into fiat it will be recorded in our bank then we need to pay taxes.So it means still taxable right from your statement.
That's not what the document is about. It's about VAT, not capital gains tax or income tax.
1) Suppose we have a friend who does not fall under the tax bracket or say has no earnings at all. One can just transfer his bitcoins to his wallet and then he can withdrawn to his bank. Then give him some commissions and spend that cash. No need to pay any tax on that bitcoin profit.
Again, that's not what the document is about. Here you refer to income tax. The method you describe, almost for sure, is illegal because your intention is to evade taxes. If you do that several times or for big amounts, it's almost sure that they'll catch you.