bitcoin and taxes buying goods and items with btc tax free

[cryptoboss2020]

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

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[jackg]

Depends on the country/legal area.

In places like Europe and probably Asia, bitcoin is treated like currency so you can't just not pay tax on what you buy for not using fiat. For countries like America I'm not sure if sales tax can still be added on but I'd imagine it probably would be argued it could still be paid (especially if someone coverts those funds to cash at some point).

You pay transaction fees in btc. Whyd you want taxes on top of that? I'd just love to ltc or eth if that happens...

[fiulpro]

Hello

In some countries this might be the case, the cryptocurrencies aren't taxed there but in most of the countries you do have to do KYC connected to your wallet , which inturns gives your information to the government very easily. Therefore if you would try to invade tax by P2P buying, you might have to go to the court to show where you got all the money from and then pay fine.

At the same time in many countries, they have system of GST , which takes around 5-10% of the price irrespective of how you decide to buy it.

Therefore you would have to check with what you are dealing with.

Laws are different in different places and I do believe you have to do a thorough research on this topic then decide to buy something with BTC.

But if you have BTC in cold storage since a very long time and therefore it's Virgin of might have no track history, then you can very easily make transactions with the other person, but registering the thing would be difficult in your name.

1. Country
2. Laws
3. Registration
4. History of the coins

There are a lot of things that you have to keep into account.

[cryptoboss2020]

but there is ways to avoid taxes right?  when you need to pay taxes in usa you send coins to europe or uk and taking out with binance debit card or asking someone in europe or uk will take out for you that could be the solution right?

off course if some ways to avoid paying taxes will be more expnsive then actually paying taxes then sure its not so good idea
Second option you buy car or other items or goods maybe some expensive weins or champagnes....

right?

[semobo]

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

You are paying the tax when you are buying the goods itself so don't feel too smart, maybe you can cashout by buying something on the blackmarket but apart from this you are going to pay taxes in someways even if your country doesn't have separate tax system for cryptos yet.

[rockzvi]

Depends on the country/legal area.

In places like Europe and probably Asia, bitcoin is treated like currency so you can't just not pay tax on what you buy for not using fiat. For countries like America I'm not sure if sales tax can still be added on but I'd imagine it probably would be argued it could still be paid (especially if someone coverts those funds to cash at some point).

You pay transaction fees in btc. Whyd you want taxes on top of that? I'd just love to ltc or eth if that happens...

However, in Russia, for example, the government is trying to control and tax everything related to cryptocurrency, and is also putting more and more restrictions.

[cryptoboss2020]

there is need of the system what selling goods and items what i know the expenses and donations are tax free thats why the company CEO-s buys a expensive things like art or some luxury things once you earn a lot you need to pay out also alot many of them instead of giving away buying just goods and items now when it comes to the crypto traders i think they can use the same methods.......that i think just:)

[cryptoboss2020]

Depends on the country/legal area.

In places like Europe and probably Asia, bitcoin is treated like currency so you can't just not pay tax on what you buy for not using fiat. For countries like America I'm not sure if sales tax can still be added on but I'd imagine it probably would be argued it could still be paid (especially if someone coverts those funds to cash at some point).

You pay transaction fees in btc. Whyd you want taxes on top of that? I'd just love to ltc or eth if that happens...

However, in Russia, for example, the government is trying to control and tax everything related to cryptocurrency, and is also putting more and more restrictions.

in russia the people who deal with cryptocurreny should do the money transactions out of russia in russia they should only hold crypto in their wallets lol

[blockman]

In our country, there's already a tax on buying goods, and we call it Value-Added Tax. From the principal amount, it's been added every time you purchase. That's why no person is an exception whether they don't want to pay taxes, they are still going to pay it every single item that they buy. But it's unclear about bitcoin being taxable, our government is crypto-friendly but regards to taxation, what I've read from others it will be categorized as income tax.

[Darker45]

As far as my country is concerned, we have an archaic tax system here which does not have effective mechanisms to impose taxes on Bitcoin. Not just Bitcoin actually, but it is a different story to discuss about it.

My point is that the tax bureau here does not and cannot monitor income from Bitcoin. So everyone involved in Bitcoin could actually get away from paying taxes. It would, however, be a different case when you shop or spend your Bitcoin in stores and other business establishments, whether online or not, which are registered. The products and services that you are paying for with your Bitcoin have already included in the prices tax obligations.

[verita1]

Worldwide Cryptocurrency Regulation - Complete Guide 2020.
https://3commas.io/blog/cryptocurrency-taxes-guide

This is a complete guide to taxes on Bitcoin and cryptocurrencies around the world that is worth knowing if you want to invest Bitcoin and cryptocurrencies in those countries.
The study is complete, ranging from taxes for individuals and institutions of the countries that apply it to countries free of taxes on Bitcoin.

[taufik123]

In my country, Indonesia has imposed a tax on bitcoin transactions for every sale transaction of bitcoin, altcoin and tokens at crypto exchange companies operating in Indonesia. the amount of tax set is 0.01%.

But in Indonesia, cryptocurrency regulation is only for trading commodities and is not allowed as a currency for buying and selling.

Transactions carried out outside of registered exchanges are still unclear about the taxes imposed, P2P transactions can be sure to be tax-free because there is no checking of crypto asset wealth.

[Gotumoot]

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

For me there would always be a tax even in crypto we just name it as transaction fee but I also see it as tax.
So even if you would see it as a cash out option when you are buying goods or items with your BTC as long as you would have to pay for the transaction fee I think you should also consider it as tax.

[adzino]

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

It depends on how your government sees bitcoin (as an asset or a currency) and your intention. You will have to pay either income tax or capital gains, but you WILL have to pay the taxes. If your transactions are large, a visit from the "taxman" is inevitable.
Like, I said, depends on your country. If you are buying goods and items with BTC, highly likely you will still me taxed. The country might see your purchase as if you converted your bitcoin to cash and then bought your items. Though this won't be a huge issue for smaller amounts, but if you do it for larger amount of regular interval, the government might think you are trying to evade taxes.

[larus]

Its still easy to avoid paying taxes from btc in 2020. A lot fo p2p exchanges, who redy to sell you cash

[abhiseshakana]

In my country, seen from the flow of additional economic capacity to taxpayers, income can be grouped into:
- income from work in an employment relationship and independent employment such as salary, honorarium, income from professional practice, and so on;
- income from business and activities;
- income from capital, in the form of movable or immovable property, such as interest, dividends, royalties, rents and profits from the sale of assets or rights that are not used for business; and
- other income, such as debt relief and gifts.

Tax officials do not care in what form the additional economic capability, in the form of gold, fiat, cryptocurrency, property, motorized vehicles or other types, taxpayers must report it in the tax return and are subject to tax. So it depends on our decision, whether we will report additional income obtained from bitcoin or just avoid it.

[Lucius]

In our country, there's already a tax on buying goods, and we call it Value-Added Tax. From the principal amount, it's been added every time you purchase. That's why no person is an exception whether they don't want to pay taxes, they are still going to pay it every single item that they buy.

VAT is a tax that many countries have and it is impossible to avoid it no matter how it is paid - so every BTC transaction is taxed in some way in the sense that sellers usually show the price of products and services in fiat, and the amount in cryptocurrency we see only on the payment processor. What can be problematic is that the tax office can get information about people who pay with BTC, and ask them to prove the origin of crypto assets and pay taxes - because if they do not recognize BTC as a currency, then such a purchase is considered as a sale and is subject to income tax.

but there is ways to avoid taxes right? 

There are always ways, just as you say the question is how much they pay off. If you use a decentralized crypto exchange and do not leave your data anywhere, you are pretty sure that the tax service will not knock on your door. If you buy a BTC directly from your friend for cash, and after a while you sell the same BTC to someone for cash - will you go to pay taxes?

On the other hand, if you are trading on a crypto exchange on which you have made KYC and you are using your bank account for withdrawal, it is logical that you will pay taxes if you want to sleep peacefully.

[Daniel91]

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

As far as I know so far, in my country the crypto tax is currently 12%.
There are also services and products that can be paid for with cryptocurrencies and as far as I understand the tax on these transactions is paid by the service provider or seller.
Sellers have to convert the amount of cryptocurrency into local currency at the end of the day, as far as I understood.

[blockman]

In our country, there's already a tax on buying goods, and we call it Value-Added Tax. From the principal amount, it's been added every time you purchase. That's why no person is an exception whether they don't want to pay taxes, they are still going to pay it every single item that they buy.

VAT is a tax that many countries have and it is impossible to avoid it no matter how it is paid - so every BTC transaction is taxed in some way in the sense that sellers usually show the price of products and services in fiat, and the amount in cryptocurrency we see only on the payment processor. What can be problematic is that the tax office can get information about people who pay with BTC, and ask them to prove the origin of crypto assets and pay taxes - because if they do not recognize BTC as a currency, then such a purchase is considered as a sale and is subject to income tax.

Yes, someone who's paying taxes in bitcoin can easily be traced as the person will be attached to that txid. It would be better to pay taxes for bitcoin through declaring it as an income tax which will be paid in fiat and not with bitcoin. I don't know the process in other countries but this is possible if someone is concern with that tracing. But if it goes to that point, you can tell that you're a trader or someone from the early years who have bought it.

[DarkDays]

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

The amount of tax you need to pay depends on your local jurisdiction and your local government and how they decided to tax crypto people. This is why some people where their local government tax them on their crypto travel to other countries to withdraw their crypto in a tax-free manner.

A news outlet article covers 8 of these countries, and you can read it here.

The alternative to travelling to other countries as stated above is to cash out via purchases, much like you suggested above. There are many websites which now allow you pay with crypto, and you can buy a wide variety of good and services.
So this could be another option. And one of these places is Bitrefill where you can purchase gift cards with your BTC.

Hope this helps.