Skip to comments.Germany Recognizes Bitcoin As “Private Money”; Sales Tax Coming Soon
Posted on 08/19/2013 3:54:12 PM PDT by Olog-hai
After a parliamentary inquiry, Germany has clarified its position on Bitcoin. The federal ministry of finance recognized Bitcoins as units of accountthe cryptocurrency is therefore be considered as private money. Thats why, according to Die Welt, the government stated that there wouldnt be a tax exemption on commercial activities that use Bitcoins. In addition to paying capital gains tax, Bitcoin users should now pay sales tax (VAT) as well.
Member of Parliament Frank Schaeffler considers Bitcoin mining as private money creation, and says that the same fiscal and legal rules should apply to Euros and Bitcoins. Yet, it is still unclear how the sales tax will be implemented. For example, an individual who sells something on eBay every now and then doesnt have to bother with sales tax. It should be the same with Bitcoin transactions.
(Excerpt) Read more at techcrunch.com ...
And now the message to all businesses in Germany: If you accept Bitcoin, you’re going to have to charge VAT. Which will have to be collected at the same time in cash, and pretty much eliminate the currency as a medium of exchange. I suppose some businesses could attempt to pay those taxes themselves, but that won’t last very long.
And good luck filing your taxes for mined bitcoins; what value you apply to the mined currency will certainly be well out of date by the time your taxes are processed.
It was just a matter of time. Germany won’t be the last.
The Power to tax is the power to destroy.
Next up will be the taxes on the treasures you find in WoW.
Ich bin ein Bitcoiner
If any Germans want to unload their bitcoins tax free, they may send them to my bitcoin address:
Was wondering why the jump in their price. Good news, IMO. Next, maybe LiteCoins...
“Ich bin ein Bitcoiner”
ROFLMAO! Post Of The Day! :)