The European Court of Justice exempted Bitcoin from Value-Added-Tax (VAT) in 2015. An application of this rule on cryptocurrencies would be logically, however tokens could be handled differently. Germany does not differentiate between cryptocurrencies and tokens whereas Switzerland is exempting cryptocurrencies but applying VAT on tokens depending on their functionality.
Even more interesting is the tax on profits from trading and holding cryptocurrencies. As cryptocurrencies are defined as units of account, they are taxed after § 23 of the German Income Tax Act (EStG). This opens the door to paradise. If you hold the cryptos for more than a year, all profits are tax-free. If you trade in shorter intervals, the personal income tax rate will be applied.
