The Federal Ministry of Finance (“Bundesministerium für Finanzdienstleistungsaufsicht”, BMF) has commented on this topic for the first time in a draft for a first supplementary letter to the BMF guidance letter of 10 May 2022.
Private investors take note:
If units of a virtual currency or other tokens are acquired or sold either via the trading platform of a foreign operator or via a decentralised trading platform (DEX), so-called foreign affairs within the meaning of Section 90 (2) of the German Fiscal Code (AO) shall be assumed, which would trigger an extended duty to cooperate for taxpayers in the form of fact-finding and obtaining evidence.
In addition, the tax office shall be entitled to an estimate pursuant to section 162 (2) of the German Fiscal Code (AO) if the documents “voluntarily” provided by the taxpayers do not enable it to verify the information in the tax returns.
The BMF has asked for comments on this draft by 29 August 2022. This request is likely to be complied in large numbers.