This rule applies to almost everyone who has some money in cryptocurrencies. Enter the value of your cryptocurrency portfolio with the tax return, in box 3 and other assets. Crypto coins form part of your other personal assets, which include, for example, your shares and your savings. Add this capital together is the capital that you must state in box 3 of the tax return. The finest options come with IOTA Kurs in every possible manner.
But, the prices fluctuate a lot, so what value do you have to state? In principle, the value of January 1 of each year is the value that you have to state. If the value of your crypto coins is very small think of a few hundred dollars then it is not a disaster if it is not declared, but the tax authorities recommend that you simply give up everything. The latter is important because the value of your coins can rise very fast the following year and then you have at least indicated where and when that value started. Everyone has a tax-free allowance. Without a tax partner, this is 30,000 dollars and with a tax partner, this is 60,000 dollars. You, therefore, do not pay tax on this amount in box 3.
Read more about setting up your cryptocurrency portfolio and the five mistakes you shouldn’t make when you buy crypto coins. It is advisable to determine the value of your cryptocurrency portfolio and to enter this value in the tax return. It is also allowed the next day which is the most favorable because there is no clear rule for this yet. Make sure that you take some screenshots of the values at that moment and how you arrive at a total calculation. So you always have answers if the tax authorities come with questions.
A handy tip; if during the year you suddenly earn a lot of money from cryptocurrencies and prefer not to report this to the tax authorities; make sure you spend it in the meantime. This way you can buy a car or other expensive items. The value of your cryptocurrency portfolio on January 1 of the following year will not rise too fast.
The exception in cryptocurrency
This is the exception because most readers will not deal with crypto on a daily basis and will not conduct it as a business activity either. But, if you are a day trader or invest in cryptocurrencies from business activities, then it is seen as income through work. This means that you must state your cryptocurrency income in box 1 for the tax return.
Do you have to pay VAT on cryptocurrencies?
This question is very easy to answer since the Court of Justice has already ruled on this. The people do not have to pay VAT on the purchase or sale of cryptocurrencies. The only thing that applies is the tax return in box 3 or box 1.
Read in before you start. Above all, do not start immediately and recklessly. Make sure that you read about the market, how exactly it is traded, where you can trade and especially what the risks are. Of course, you hear beautiful stories from people who have earned a lot of money, but you can only achieve this by handling your investment wisely.