Germany will not apply taxes on cryptocurrency purchases

The Finance Minister of Germany has officially announced that they won’t be applying taxes on payments made with Bitcoin. On February 27, German authorities have decided that they won’t apply fees on any cryptocurrency use in purchases. The decision has at its basis the final judgement from 2015 of European Court that represents a precedent for all the states members of the Union.

According to a statement, the Court considers digital coins as a legal form of payment as long as they are allowed as a payment when purchasing certain things.

The same decision states that the fiat to crypto and vice versa exchanges are classified as taxable and the intermediates for these sorts of exchanges are spared from taxation. In other words, cryptocurrency exchanges are not paying fees if they proceed Bitcoin acquisitions through third party for the self benefit.

The European Court has also established that the mining fees are not going to be taxable, as they are the representation of voluntary payments. The distinction between Germany and US is pretty big as in United States, IRS thinks that Bitcoin is an asset, therefore any purchase using Bitcoin is a sale of an asset and it is dutiful to taxes.