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.