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If there are more and more people in cryptos especially IOTA, how will they pay taxes for their data or electricity?

I am from Germany and if I want to sell things e.g. electricity and gain more money than a given amount I have to create a business and pay taxes. So how could they solve this? (they = politics and/or country)

Another example: If there is a company that pays their fuel and parking costs with iota and wants it to deduct from their taxes, how could they proof it is a business expense.

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  • It's like any type of barter, they are taxed by their money value at the time of the exchange. If you don't write those down in your taxes, it's fraud.
    – the_lotus
    Dec 27, 2017 at 16:24
  • The electricity example? But this isnt possible, there will be millions of transactions. I cant track them by myself. Correct me if I get something wrong.
    – V3RSUS_V
    Dec 27, 2017 at 17:38
  • If you sell electricity, you sell it to the grid which is owned by an entity. That entity need to then give you a receipt that you should then use for your taxes.
    – the_lotus
    Dec 28, 2017 at 13:24

1 Answer 1

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Interesting topic for the protocol. Currently I think it would be suitable if you use the messages for it. You have then just to include tax rate etc. You can also use encryption for it. Iotas masked messages feature could be used for this topic: https://blog.iota.org/introducing-masked-authenticated-messaging-e55c1822d50e

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  • Thanks for the answer, Philipp. But i didnt get it completely. These messages are they like a bill? Because this is what I need to proof my expenses.
    – V3RSUS_V
    Dec 27, 2017 at 17:48
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    @V3RSUS_V You can add a message to every transaction. So, you can, if you want, just put a bit in it. In every format you like. yaml, json or whatever :) You can also encrypt your message. I would use this for it and tell the other side how the message looks like.
    – Citrullin
    Dec 28, 2017 at 13:09

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