Germany Approves Cryptocurrency As Legal Means Of Payment

[ScotlandPros]

Hi Community not sure if you have heard about the following so thought I would share:

Germany Approves Cryptocurrency As Legal Means Of Payment

The German Ministry Of Finance would exempt tax payment from bitcoin and other cryptocurrency transactions used as a means of payment.

On Tuesday Feb 27th, the German Federal Authority issued a statement announcing its decision to consider purchases with bitcoin and other cryptocurrencies as tax exempt, citing the 2015 judgement of the European Court, which set a precedent for all members of the European Union.

With the newly introduced tax laws, Germany will regard cryptocurrency as equivalent to legal tender when used as a means of payment. The German Tax statement reads:

"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 EU's directives, a conversion from crypto to fiat or vice versa is classified as "other taxable services". This means that a tax exemption benefit shall be implemented for transactions that involve exchanging cryptocurrencies to fiat currency and vice versa.

Under this provision, cryptocurrency exchanges operating in the country can also benefit from tax exemptions acting as intermediaries for exchange transactions. The court's ruling also states that the minor's fees will not be taxed as their services are 'voluntary' under these tax laws.

These set guidelines by the German Ministry Of Finance are in contrast with the US government stance on cryptocurrency, where the Internal Revenue Service (IRS) considers Bitcoin as property and therefore subject to property tax.

Hope you found my post useful.  Merit

[Ozero]

I can add that the concrete decision of the European Court of Human Rights is a source of law and is binding for all states that signed the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950. This is 41 states in Europe and in general in the world. These states will be obliged to amend their laws to ensure that their laws comply with a specific decision of the European Court of Human Rights. Thus, this judgment is crucial for the crypto currency, since these countries will be obliged not only to recognize the crypto currency as a legitimate means of payment, but also to free from taxation operations on converting crypto currency to fiat and vice versa.

[Trimzi]

Germany is one of the leaders in Europe and world when it comes to economics. This new is very encouraging and we could see others follow these steps.
I'm very happy to hear this. In some way it is inevitable.

[matuson]

I can add that the concrete decision of the European Court of Human Rights is a source of law and is binding for all states that signed the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950. This is 41 states in Europe and in general in the world. These states will be obliged to amend their laws to ensure that their laws comply with a specific decision of the European Court of Human Rights. Thus, this judgment is crucial for the crypto currency, since these countries will be obliged not only to recognize the crypto currency as a legitimate means of payment, but also to free from taxation operations on converting crypto currency to fiat and vice versa.

You probably don't know the law. Court of human rights is based in Strasbourg and has no relationship to the cryptocurrency. I agree that any decision aimed at simplifying the rules of cryptocurrency use is a relief for us. But this will be followed by an attempt to regulate this market. This could be a problem.

[Claudyah]

German federal authorities issued its decision not to impose a tax on purchases using Bitcoin and other cryptocurrencies on February 27, citing the European Court's decision in 2015, which sets a precedent for all EU members.

[gentlemand]

Does this apply to every single thing you buy? Bitcoin in Germany is tax exempt if you hold for over a year anyway, but buying a house with Bitcoin is certainly an awful lot of tax dodged compared to other countries.

The US has been proposing exemptions up to $600 expenditures but this is a whole extra league. Wish I was a German.

[samcrypto]

Germany is one of the leaders in Europe and world when it comes to economics. This new is very encouraging and we could see others follow these steps.
I'm very happy to hear this. In some way it is inevitable.

If this thing happen according to the plan I think cryptomarket will go higher this year. Germany is a good place for cryptocurrency and a great country in EU, I hope that the other member of EU will follow the steps of Germany towards the acceptance of a digital currency. I heard also the news about Russia, I think more country will accept this kind of innovation soon.

[Vektrum]

I can add that the concrete decision of the European Court of Human Rights is a source of law and is binding for all states that signed the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950. This is 41 states in Europe and in general in the world. These states will be obliged to amend their laws to ensure that their laws comply with a specific decision of the European Court of Human Rights. Thus, this judgment is crucial for the crypto currency, since these countries will be obliged not only to recognize the crypto currency as a legitimate means of payment, but also to free from taxation operations on converting crypto currency to fiat and vice versa.

You probably don't know the law. Court of human rights is based in Strasbourg and has no relationship to the cryptocurrency. I agree that any decision aimed at simplifying the rules of cryptocurrency use is a relief for us. But this will be followed by an attempt to regulate this market. This could be a problem.

The European Court of Human Rights is really in Strasbourg. He considers any issues of violation of human rights, which are specified in the Convention for the Protection of Human Rights and Fundamental Human Rights of the 1950s. Therefore, if a specific citizen of a country that signed the 1950 Convention on the Protection of Human Rights and Fundamental Freedoms considers a violation of his rights by the state that he is deprived of lawful use of a crypto currency in his country, he can apply to the national court and pass all courts in their country, within six months, apply with a relevant application to the European Court of Human Rights against their state. The European Court may have considered this violation as discrimination (Article 14 of the Convention), but it is mandatory as a violation of the right to a fair trial by the courts of that country (Article 6 of the Convention).

A concrete decision of the European Court of Human Rights is mandatory for all countries that have acceded to the above Convention. Germany acceded to this Convention on 05.12.1952, therefore it is obliged to comply with the decision of the European Court.

[btc-facebook]

For me it's good news because German will become the great bitcoin influencer so it will increase bitcoin value globally.
Implement tax for bitcoin transaction also bring positive effect not just bitcoin demand increase but also German get their income through tax !

[Clausewitz]

It doesn't mean that you don't have to pay taxes  . All this is about VAT not about income taxes.

[lili song]

Great news Germany can accept cryptocurrency to their country, I believe some country will see cryptocurrency grow in Germany.
Implement tax is can give more profit for that country. Bitcoin supply and demand in Germany is high.

[CryptoBry]

This is a very welcome development as Germany is becoming a cryptocurrency powerhouse in Europe and since Germany is the leader in this side of the world we can expect neighboring countries big and small to also adopt their own stand on cryptocurrency in favor of allowing it to grow and flourish though am sure still in a strict framework. Definitely, this can become a big signal and encouragement for the whole Europe to be open to cryptocurrency. Hopefully, other big Western countries like the USA will follow the same kind of recognition. I am expecting that this year more and more countries will be part of the cryptocurrency market.

[Minerfortyniner]

That's awesome. Germany is paving the way for more governments to adapt the new currency.
I think cryptocurrecny is the future of money. 

[Kumic]

This is very nice. I'm glad to hear such a good news. And that's Germany we're talking about.
More of this will come now for sure. Happier future for crypto.

[jaocoincrypto18]

Hi Community not sure if you have heard about the following so thought I would share:

Germany Approves Cryptocurrency As Legal Means Of Payment

The German Ministry Of Finance would exempt tax payment from bitcoin and other cryptocurrency transactions used as a means of payment.

On Tuesday Feb 27th, the German Federal Authority issued a statement announcing its decision to consider purchases with bitcoin and other cryptocurrencies as tax exempt, citing the 2015 judgement of the European Court, which set a precedent for all members of the European Union.

With the newly introduced tax laws, Germany will regard cryptocurrency as equivalent to legal tender when used as a means of payment. The German Tax statement reads:

"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 EU's directives, a conversion from crypto to fiat or vice versa is classified as "other taxable services". This means that a tax exemption benefit shall be implemented for transactions that involve exchanging cryptocurrencies to fiat currency and vice versa.

Under this provision, cryptocurrency exchanges operating in the country can also benefit from tax exemptions acting as intermediaries for exchange transactions. The court's ruling also states that the minor's fees will not be taxed as their services are 'voluntary' under these tax laws.

These set guidelines by the German Ministry Of Finance are in contrast with the US government stance on cryptocurrency, where the Internal Revenue Service (IRS) considers Bitcoin as property and therefore subject to property tax.

Hope you found my post useful.  Merit

This is a great news that this will be an addition to previous developments that are happening around the globe in which in favor of Bitcoin so that the former ATH last year will reach again. Germany is a great country that can attract more nations in the world specially the whole Europe to do the same to adopt, to support and to promote Bitcoin as they believed that it will benefits not only the government but all of the German people as well.

[Baoo]

Good news , this is a good step for Germany. In fact, this intelligent decision will be of great benefit to the development of their economy. and thus, there will be a facility in transactions, and it will become easier than before. and hope that the other countries will recognize bitcoin as a legal currency and as a means of payment.
Furthermore, I think that the era of bitcoin attracted the attention of many countries through their multiple advantages (like, the high value of price and market cap and the low fees...).

[Prinox2]

this a welcome development,
i just wish other countries will embrace crypto too..

[carlfebz2]

I can add that the concrete decision of the European Court of Human Rights is a source of law and is binding for all states that signed the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950. This is 41 states in Europe and in general in the world. These states will be obliged to amend their laws to ensure that their laws comply with a specific decision of the European Court of Human Rights. Thus, this judgment is crucial for the crypto currency, since these countries will be obliged not only to recognize the crypto currency as a legitimate means of payment, but also to free from taxation operations on converting crypto currency to fiat and vice versa.

You probably don't know the law. Court of human rights is based in Strasbourg and has no relationship to the cryptocurrency. I agree that any decision aimed at simplifying the rules of cryptocurrency use is a relief for us. But this will be followed by an attempt to regulate this market. This could be a problem.

Having doubts always when it comes to this situation which its quiet odd for accepting and considering it with its full extent or freedom on how it should work.If they wont impose any taxes since they do mention about exemption then it would really be a relief but I don't have trust into any government when it comes on making laws or decision.It can be reverted anytime in an instant.

[Biscutard]

Hi Community not sure if you have heard about the following so thought I would share:

Germany Approves Cryptocurrency As Legal Means Of Payment

The German Ministry Of Finance would exempt tax payment from bitcoin and other cryptocurrency transactions used as a means of payment.

On Tuesday Feb 27th, the German Federal Authority issued a statement announcing its decision to consider purchases with bitcoin and other cryptocurrencies as tax exempt, citing the 2015 judgement of the European Court, which set a precedent for all members of the European Union.

With the newly introduced tax laws, Germany will regard cryptocurrency as equivalent to legal tender when used as a means of payment. The German Tax statement reads:

"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 EU's directives, a conversion from crypto to fiat or vice versa is classified as "other taxable services". This means that a tax exemption benefit shall be implemented for transactions that involve exchanging cryptocurrencies to fiat currency and vice versa.

Under this provision, cryptocurrency exchanges operating in the country can also benefit from tax exemptions acting as intermediaries for exchange transactions. The court's ruling also states that the minor's fees will not be taxed as their services are 'voluntary' under these tax laws.

These set guidelines by the German Ministry Of Finance are in contrast with the US government stance on cryptocurrency, where the Internal Revenue Service (IRS) considers Bitcoin as property and therefore subject to property tax.

Hope you found my post useful.  Merit

This is a great news that this will be an addition to previous developments that are happening around the globe in which in favor of Bitcoin so that the former ATH last year will reach again. Germany is a great country that can attract more nations in the world specially the whole Europe to do the same to adopt, to support and to promote Bitcoin as they believed that it will benefits not only the government but all of the German people as well.

Talking about ATH with their current situation will not help to rise Bitcoin. This news is just referring that one of the major countries could manage to settle things between crypto currency and fiat currency. And yet will be a big help in the future references.

[tweetbit]

It helps a lot in determining the consequences of every action this country have done, then others will learn from them. If this work and the citizens in that country find it as an advantage and comforting they’re transactions with less hassle then the possibility is high. But what will the bankers do and their partner or paid media in this scenario, any controversies will occur to make it unworthy and unsuccessful. Be ready with that.