How many mainstream retailers accept crypto

Bitcoin & Co .: What online traders need to know before accepting crypto money

Bitcoin has a dubious reputation: means of payment in the cyber underworld, highly speculative investments - but also the preferred method of payment by many groups of buyers. IT4retailers tells retailers what they need to know.

Are bitcoins acceptable means of payment in Germany?

The short answer: yes. The Federal Financial Supervisory Authority (BaFin) has classified Bitcoins as financial instruments under the German Banking Act. So far, Bitcoin transactions have been treated by the tax authorities in the same way as buying and selling gold. However, many legal issues are actually largely unanswered.

How can a trader protect himself from price fluctuations?

The value of bitcoins is subject to significant fluctuations. Traders who do not bet on speculative profits would therefore do well to exchange payments received into euros on a daily basis. This results in a further risk: Assuming that a customer pays first, then withdraws from the purchase, and the Bitcoin rate has risen sharply between purchase and withdrawal - the merchant would then have to reimburse the buyer with more euros in Bitcoin exchange than he originally received.

“About two years ago, Bitcoin was seen as a fringe technology for computer freaks. In the meantime, Bitcoin and Co. are also gaining more and more popularity in the mainstream "

Demelza Hays, doctoral candidate at the University of Liechtenstein

This second risk can also be avoided if the retailer links the payment to a hard currency: In the sales contract, he specifies “Bitcoins with the equivalent of X euros” as the purchase price. If the customer later withdraws from the purchase contract, he is then only entitled to a refund in the same equivalent value - even if he then received significantly fewer Bitcoins.

How can a payment by Bitcoin be offered specifically?

Anyone who wants to offer Bitcoins in brick-and-mortar retail can choose from the offers of a whole range of POS service providers. Small one-man businesses may even get by without expanding the cash register system: They can receive the payment via smartphone app in their own Bitcoin wallet. If you want something more convenient, you could use a POS solution, for example from Conify (https://coinify.com/) or Bitpay (https://bitpay.com/) contemplate.

Online retailers will find suitable plugins for most shop systems - which either transfer the payments directly to their own wallet or to one of the payment service providers mentioned above. Payment service providers usually take care of the complete payment processing, the immediate exchange into euros (or another classic currency), but also charge fees that depend on the size of the transaction. As a rule, these fees are one to two percent of the total.

How does a merchant tax income from Bitcoin transactions?

There is actually still a lot to be clarified with regard to the tax treatment of transactions with cryptocurrencies. Basically, the same applies to sales from Bitcoin transactions as to sales in foreign currencies: From the amount received, the trader calculates the value added tax rate applicable for the respective business; Euro transactions, to be offset against any input tax credit and to be paid to the tax office. The operating income itself is to be booked and taxed at the equivalent value in euros at the time it is received.

A common mistake in this context: The Federal Ministry of Finance has decided (https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/ sales tax / sales tax application decree / 2018-02-27-sales tax-handling-of-bitcoin-and-other-so-called-virtual-currencies. pdf? __ blob = publicationFile & v = 1), to not levy any sales tax on trading Bitcoins itself. So if you exchange 100 euros for bitcoins, you really only have to pay 100 euros, not around 119 euros. However, if you accept a payment in Bitcoins for goods subject to VAT to the value of 100 euros, you have to charge your customer the corresponding VAT and pay it to the tax office. Photo: LinkedIn (dme)