Germany won’t tax Bitcoin payments

Germany’s Ministry of Finance has announced it will not tax people for using cryptocurrency as a means of payment, CoinDesk reported.

The country will view Bitcoin as equivalent to legal tender for tax purposes when used as a form of payment.

A document issued by the ministry stated that like fiat currency, cryptocurrency purchases would be subject to standard VAT rules.

German cryptocurrency miners will not be taxed, while exchanges operating as a technical marketplace will be subject to taxes.

The decision stands in contrast to the US, where Bitcoin purchases are considered a sale of property.

Now read: Startup uses blockchain to verify fine art