Tax Office demands sales tax in Bitcoin sale
the Finanzamt Bonn calls for the establishment of a sales tax on the sale of Kryptowährungen. With reference to the Federal Ministry of finance, crypto trade should be fully subject to VAT. This is contrary to the Tax Office of a decision of the European Court of Justice.
According to the federal authority for financial services (BaFin) and the Federal Ministry of finance Kryptowährungen in Germany are not regarded as legal tender, but as a so-called intangible assets. You can find more detailed information about the receive from crypto our article Kryptowährungen and taxes .
The sales tax so far played no role in the taxation of crypto. The reason for this was the decision of the European Court of Justice ECJ in the year 2015. In case, the ECJ decided Hedqvist to assert Bitcoin exchange sales tax exemption. The ECJ goes judgment positioned so that rather in the direction of the British interpretation of the value added tax of Bitcoin Exchange, while the Federal Government.
Currently circulating messages, the previously common practice is now called into question. So about the IRS has presented a report Bonn on 24 January, in which the sales tax exemption is doubted. Instead should be trading and sale of Bitcoin and other Kryptowährungen be fully subject to sales tax. As a basis for this requirement, the Finanzamt Bonn refers to the opinion of the Federal Ministry of finance.
According to the Ministry of finance is “an exemption of the revenues from the trade in virtual currency of the value added tax (VAT) not taken into consideration.
Is not at the trade in and the use of sales of virtual currency in particular sales or the mediation of sales of legal means of payment. The purchase and sale of Bitcoins are therefore first fully VAT registered to handle.”
Would you apply this notion would have incalculable consequences for the other commercial with Kryptowährungen in Germany. So, any sale would be taxed by Kryptowährungen with 19% value added tax. This measure would have a significant impact on crypto business of small investors and could cause adverse price developments quickly, that the tax burden to be provided exceeds the gains.
Before requiring the Finanzamt Bonn but now is put on the gold scales, it first of all keep calm. Also relying on an opinion of the Ministry of finance, a German tax office does not have the highest European Court can flout them. The verdict from the year 2015, with the sales tax exemption for sale of Kryptowährungen has been set, will continue to apply. Therefore, the claim of the Finanzamt Bonn on the basis of European legislation is indefensible.