Digital taxation prospectives. Cryptocurrencies taxation with regard of Germany and Austria. The possible way towards an international global minimum taxation

Abstract

This study provides an in-depth analysis of the evolving landscape of digital and cryptocurrency economies within the European Union (EU), focusing on regulatory frameworks, taxation policies, and broader economic implications. With the introduction of the Directive on Administrative Cooperation (DAC8), the EU addresses the emergent tax challenges posed by cryptocurrencies. DAC8 seeks to enhance transparency in cryptocurrency earnings through expanded reporting and information exchange mandates for crypto service providers, aligning with the Markets in Crypto-assets Regulation (MiCA) and international standards. This move is aimed at combating tax evasion and fostering fair competition, particularly benefiting Small and Medium-sized Enterprises (SMEs).The paper also explores the implications of rapid technological advancements on taxation structures, emphasizing the need for comprehensive tax reform in light of digitalization and ecological sustainability. The discussion includes Italy's strategic responses to these challenges through its National Recovery and Resilience Plan.Further, the document examines the complex legal landscape surrounding cryptocurrencies like Bitcoin and Ethereum, delving into their classification, potential challenges to state currencies, and diverse tax treatments across EU and German laws. Additionally, the study investigates the Value Added Tax (VAT) aspects of cryptocurrencies in Austria, particularly in light of the European Court of Justice’s Hedqvist ruling, which has significant implications for Bitcoin exchanges and mining activities.Conclusively, the paper underscores the EU's proactive stance in shaping a regulatory environment conducive to cryptocurrency innovation while safeguarding consumer interests and addressing environmental concerns. It highlights the importance of adapting to the digital transformation and the potential risks inherent in unregulated cryptocurrency markets. The study offers a comprehensive perspective on the current state and future trajectory of digital taxation and cryptocurrency regulation in the EU, emphasizing its impact on the economy and legal system