bitcoin and taxes buying goods and items with btc tax free

[erikoy]

Here in our place buying products using bitcoin is not free of tax because the tax is already added to the item which being bought using bitcoin. Aside from that you have also to pay the transaction fee of bitcoin from bitcoin miners confirming the transaction.

It sounds like you spend twice from having tax and at the same time from the transaction fee because your doing from decentralized to centralized system. If you will going to use bitcoin to a decentralized system like monet transfer from around the world then that would be great because it will only take few amounts deducted as transaction fee compared to the centralized service wheb making transaction with them.

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[seoincorporation]

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?

Taxes are different for each country, i could explain how it works for my country but maybe is a different way in yours... now i'm in México and when we make a depo to the exchange  then we got a ticket where the exchange charge 16% for taxes, after that if we made a withdraw from the exchange to our wallet, we should only report the income we get, i know is a little complex to understand that's why i will go for an example:

If you make a depo of $1,000 to the exchange, then buy bitcoin, then the price goes up and then you withdraw $1,100... In that scenario, you have to report the $100 income, and pay taxes over that amount. Not over the full withdraw. That's how it works at least in my country.

[MCobian]

Each country has its own rules regarding taxes, so there are several countries that do not impose taxes on BItcoin.
So trading using Bitcoin does not need to pay taxes, but usually countries that exempt taxes on Bitcoin, only accept
Bitcoin as a digital asset only. So you can't use Bitcoin to buy goods.

[Rengga Jati]

So far, I do not pay for taxes. Well yeah, actually there is no regulation about taxes in cryptocurrency yet.

However, it may be different in each country, depending on the regulation and law from the country itself. I can't say that there is no tax for BTC because some countries may apply taxes for crypto.
Some countries are likely: Singapore, Portugal, Malta, Switzerland, and others. Most of them are taxed for business taxation of crypto.
Actually, taxation for crypto so far is still debatable and it may role complicated regulation.

[NavI_027]

Here in our country, where even online sellers are planned to pay taxes as well lmao, bitcoin investors like us are still safe . There is no strict law/rule (at least for now) imposed by the government with regards to regulation of bitcoin and any other crypto. Thus we are moving freely and take advantage of it until now. In my 3 years of experience, I haven't spend a single cent on paying taxes and I hope the same system will continue forever.

Ps: I did not consider VAT on every goods/services because I think it was a different story.

[Warkop]

In my opinion it depends on which country you are from, because in some countries there are already legal and some are still illegal, so in every state regulation it is very different, not all Btc countries are taxed for converting Btc to real currency or buying goods  with Btc.

[worldofcoins]

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?

I don't pay any taxes with bitcoins.
I usually buy product/items from online stores Its all depends on the area where bitcoins is accepting and using legally.
In my region we don't need to pay tax until we use the fiat our government is supporting the cryptocurrency and they build some ATMs too, however, we're just paying a small transaction fee from bitcoins.

[webtricks]

so how about taxes you have to pay from btc ?

Although, taxation on bitcoin or other cryptocurrencies is highly subjective depending upon the country you live in but this thread has few parts having high quality resources on bitcoin taxation which is common for almost all the countries: https://bitcointalk.org/index.php?topic=5275952.0. It will clear many of your doubts.

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

Nope! Don't even think about it that way. It is same as assuming that depositing bitcoin on an exchange and withdrawing it to a different bitcoin address will have same effect as of mixing coins with Bitcoin Mixer.

There is high chance that you will left behind digital trails while purchasing goods/services with crypto online even if you tried to maintain complete anonymity using fake names, etc. Cryptocurrencies aren't as anonymous as people think it is. I see people regularly getting caught for evading taxes by paying for goods in hard cash. Now imagine, if it is possible for agencies to track tax evasion with something as anonymous as physical cash, won't they caught you with bitcoin especially when well-detailed record of every bitcoin transaction is available on blockchain?

[cryptoboss2020]

so how about taxes you have to pay from btc ?

Although, taxation on bitcoin or other cryptocurrencies is highly subjective depending upon the country you live in but this thread has few parts having high quality resources on bitcoin taxation which is common for almost all the countries: https://bitcointalk.org/index.php?topic=5275952.0. It will clear many of your doubts.

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

Nope! Don't even think about it that way. It is same as assuming that depositing bitcoin on an exchange and withdrawing it to a different bitcoin address will have same effect as of mixing coins with Bitcoin Mixer.

There is high chance that you will left behind digital trails while purchasing goods/services with crypto online even if you tried to maintain complete anonymity using fake names, etc. Cryptocurrencies aren't as anonymous as people think it is. I see people regularly getting caught for evading taxes by paying for goods in hard cash. Now imagine, if it is possible for agencies to track tax evasion with something as anonymous as physical cash, won't they caught you with bitcoin especially when well-detailed record of every bitcoin transaction is available on blockchain?

what if many people will use one bitcoin wallet and same exchnager as there is bitcoin trading teams who use same things like every team member use binance same account becouse they hold mutual funds there as many people trade crypto as a team.

but it all depends on country and juridcal locatiion

[Eternad]

The items that awe are going to buy in my country already have added tax so when there is transaction that need sto pay the tax is not noticeable as it is already in it's tag price. Same with if we're going to tax biycoin besides tax from transactions like paying bills and other trading or exchange process it will simply depend on your countries rule. Tax is always there but somehow they manage not to make it too noticeable by the tax payer.

[romero121]

Taxation on bitcoin is purely based on the income generated out of it. No countries have developed a clear framework on the taxation of bitcoin, because single bitcoin can be valued $10k as well as $20k depending on the market.

Governments always try to make an earning out of taxation irrespective of the market and the way of earning. Maybe services bought in exchange for bitcoin can skip the taxation as it is between the client and the service provider. When product is bought/sold it'll be taxed, because on production itself it'll be taxed.

[ekeh]

The world is gradually moving into technology, and is a just a matter of time for government to adopt the traditional way or implications into the system. Therefore bitcoin is an digital assets that can be convert to any local currency in the world.

[Zionatin]

Just sales tax. No income tax because crypto is not money and not given to us by the government so they have business telling us how to use it. It's that simple. If the government has a problem with it then they should open up their own crypto wallets but they won't because then we can trace our tax money and reveal the corruption.

[0t3p0t]

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.

Yeah and the thing that I have observed in using Bitcoin as payment here in my country is that, it only requires fee when cashing-in and cashing-out. Paying/buying goods and services are smooth without any fee except for the loan that collect $.31 every transaction. Also transferring funds into banks made it more easier and of course free of charge here in my country. I am happy to use Bitcoin because of convenience most specifically this pandemic.

[Reid]

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?

Tax evasion. Now I am tracking you.
Just kidding.  

For every item, there is always a tax that is coupled with it.
You cannot evade it even if you want to.
Put it this way, you buy MnM's. The chocolate inside is the product and the coating is the tax.  
I consider every purchase now is applied with tax already.

[Daniel91]

Just sales tax. No income tax because crypto is not money and not given to us by the government so they have business telling us how to use it. It's that simple. If the government has a problem with it then they should open up their own crypto wallets but they won't because then we can trace our tax money and reveal the corruption.

An interesting idea but what if you exchange that bitcoin into the local currency and buy a house, for example? Or a ship?
I think that a certain compromise with the authorities is needed and that we need special rules for crypo.
In my country, if you can prove that you kept crypto funds in your wallet for at least 2 years and did not spend it, you are exempt from paying taxes and that is a good law.

[btc78]

The world is gradually moving into technology, and is a just a matter of time for government to adopt the traditional way or implications into the system. Therefore bitcoin is an digital assets that can be convert to any local currency in the world.

But converting Bitcoin into fiat in other part of the world is not that easy,and while the world is getting into technology yet governments are getting stricter to Bitcoin and cryptocurrencies.

Just sales tax. No income tax because crypto is not money and not given to us by the government so they have business telling us how to use it. It's that simple. If the government has a problem with it then they should open up their own crypto wallets but they won't because then we can trace our tax money and reveal the corruption.

Bitcoin is a Money because we can use this as purchasing materials from product and services though limited chances.
but you are correct Sales tax is much even better to apply and not income taxes.

[webtricks]

so how about taxes you have to pay from btc ?

~snip~

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

~snip~

what if many people will use one bitcoin wallet and same exchnager as there is bitcoin trading teams who use same things like every team member use binance same account becouse they hold mutual funds there as many people trade crypto as a team.

but it all depends on country and juridcal locatiion

Such thing is only possible in case of centralised services such as Exchanges and Custodial wallets. But instead of giving you anonymity advantage, it will result in entirely opposite situation. For using such services, you have to do KYC. In other words, you are giving away your credentials which will make you more prone losing anonymity.

[Yatsan]

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

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

Certainly those things must be considered to better know if using Bitcoin is in need to be fined with taxation or not. There are really certain key points that are not the same on every country so the answer will really be dependent or varies upon the place where you are resided to better know if taxation is also applied on buying goods and services using Bitcoin. For countries where they can directly use Bitcoin as payment option maybe taxation is applied and that is duly dependent on the government if they would be putting such law for their country. Well actually even using fiat or Bitcoin, all things like goods and services have already their VAT (Value Added Tax) top up on those things that we purchase.

[proTECH77]

In my country which bitcoin is just newly legalized in the country which the government made taxes free for every citizens in the country. Since covid-19 came up our government  is trying to Impose double tax to every business man in the country.
But I don't think it will work for my country for bitcoin users to pay taxes for their purchase because bitcoin newly legalized in the country. The government will still consider that the population of bitcoin users is not too popular to  pay taxes for bitcoin items in the country.