Germany Not to Tax Bitcoin Purchases

According to the Ministry of Finance, Germany won't tax bitcoin users for using the cryptocurrency as a means of payment
01 March 2018   1941

According to the guidance, published Tuesday by the Ministry of Finance, Germany will regard bitcoin as the equivalent to legal tender for tax purposes when used as a means of payment.

The Ministry of Finance based its guidance on a 2015 European Union Court of Justice ruling on value-added taxes (VAT).

The new German document considers cryptocurrencies as a legal method of payment. The document states that cryptocurrencies become the equivalent to legal means of payment.

According to the document, converting crypto into a fiat currency is a taxable miscellaneous benefit. However, an intermediary for the exchange will not be taxed.  But when a customer buys a product with bitcoin, an article of the EU's VAT Directive will be applied to the price of bitcoin at the time of the transaction.

The document also states that payment fees sent to digital wallet providers or other services can be taxed. Miners will not be taxed, as their services are considered to be voluntary.

Traders, that buy or sell bitcoin in their own name as an intermediary will receive a tax exemption. At the same time, an exchange operating as a technical marketplace will not receive any such exemption.
 

Bitifinex to Cooperate With Bitrefill

Exchange's users will be able to purchase products from the Bitrefill catalog with help of Lightning Network
05 December 2019   109

The Bitfinex cryptocurrency exchange has entered into a partnership with the service of replenishing mobile accounts and gift certificates Bitrefill.

Using Lightning Network (LN) technology, Bitfinex users will be able to purchase products from the Bitrefill catalog, which includes more than 2,000 digital gift cards and options for replenishing mobile accounts.

As soon as the user pays for the goods using Bitcoin, Bitfinex and Bitrefill automatically settle through the LN network, which makes transactions cheaper and much faster.

Bitcoin’s use as a means of payment represents an important milestone in the inevitable journey towards mass adoption. This is why the Lightning Network is so important. As an exchange, Bitfinex is at the forefront of developing solutions utilizing this technology.
 

Paolo Ardoino

CTO, Bitfinex

On December 3, Bitfinex integrated payment support through the Lightning Network.