In Germany Bitcoin become a legal means of payment

In Germany Bitcoin become a legal means of payment

German Federal Authority has signed a decree according to which purchases for cryptocurrency are not taxed

On Tuesday morning Bitcoin is trading around $11,3K per coin. Compared to Monday morning Bitcoin price ($11,5K) has dropped -1.72%.

Fluctuations of Bitcoin's rate may be connected with some changes in world situation. Such important event is that Germany has signed a decree according to which Bitcoin is recognized as full-fledged legal means of payment.

This decision was signed by the German Federal Ministry of Finances on February, 27. According to it Bitcoin purchase will not be taxed when it is used as payment instrument:

“So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”

So, the purchases being made for cryptocurrency will not be taxed on capital outflow, as it occurs in the USA. People who purchase goods or pay for services with bitcoins will pay value-added tax.

The German federal authority attributed miners fees to the tax-free activity, since they are paid on voluntary basis.


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