Crypto Tax Return in Germany: Deadlines, Penalties, Consulting

There are numerous ways to make profits (or losses) with cryptocurrencies, be it simply by trading cryptocurrencies or through activities such as staking, lending or operating masternodes. We have explained how such profits are handled in numerous articles on this website and in our blog. However, knowledge of the correct taxation does not yet enable a person to determine the profits made and explain them to the tax authorities. The proper tool for this is the so-called crypto tax return.

What is a crypto tax return?

A crypto tax return accurately brings together one's trading data, closes any gaps logically and determines the taxable profit, which is then reported to the German tax office. How can such gaps occur? Investors use cryptocurrencies very individually and differently. Unfortunately, data is often lost in the process. Sometimes file sharing networks disappear from the market and even a wallet can be lost. But a crypto tax return must bring all data together to determine the profit/loss. Due to the individual circumstances, an accompanying letter of clarification is also part of the crypto tax return. This way the tax office is kept informed about the facts and is also immediately "pointed in the right direction" concerning the fiscal assessment.

Our promise


Crypto tax consulting at WINHELLER means:

  • Clarification of all unclear issues
  • Reconstruction of lost trade details
  • Advice on the choice of FiFo or LiFo
  • Timely submission of the income tax return
  • Full communication with the tax office by our experts

You need support and want to avoid tax evasion? We look forward to hearing from you at +49 (0)69 76 75 77 80 or info@winheller.com.

Who needs to file a tax return for trading cryptocurrencies in Germany?

Anyone who has made taxable profits from activities with cryptocurrencies in a given year must file a tax return. This also applies if the person is otherwise not obligated to submit a tax return in Germany and is not requested to do so by the tax authorities. Especially students and employees might therefore fail to submit a tax return. This is a quick way to commit illegal tax evasion.

Automated Crypto Tax Report for German Tax Authorities

The crypto tax return regularly poses challenges for private crypto investors. Because everyone who makes taxable profits from activities with cryptocurrencies has to file a tax return. However, stating losses can also be an advantage, as these can be offset against future profits. WINHELLER and ACCOINTING have jointly developed a solution that allows crypto investors to quickly and easily create a tax report for tax authorities in Germany. Learn more

When do you have to file the tax return?

The deadline for filing the tax return is generally on July 31 of the following year. This means that for the year 2019 it was July 31, 2020. Those who submit their tax return through a tax consultant are given more time, namely until February 28 of the year after next. In addition, a tax consultant can often apply for an extension of the deadline with the tax authorities if the processing of the crypto activities is particularly complex.

Which information do I need to submit my tax return for cryptocurrencies?

You generally need all CSV files of the exchanges and wallets you are using. In addition, you will need all further information on any secondary activities such as participation in ICOs, lending of cryptocurrencies, etc. The more complete the information is, the faster the crypto tax return can be produced.

Can I declare my crypto winnings on my own trough ELSTER?

Basically, this is possible. In this case, you have to calculate the profits yourself and enter them correctly into the SO or KAP file. For higher profits, the independent declaration of all profits is not recommended.

What risks are involved in case of errors or if I fail to file an income tax return altogether?

If you declare fewer profits than you actually made or do not file a tax return at all, you may be guilty of tax evasion. In the case of negligent miscalculation, this also constitutes an illegal tax reduction. The tax authorities can order criminal prosecution measures, including house searches and the seizure of electronic equipment if they suspect that you are guilty of tax evasion. You may also have to pay penalty interest on the taxes evaded.

What are the typical mistakes investors make in their crypto tax returns?

One fundamental mistake is not to file a tax return because you have only "made crypto" and have not exchanged money back into Euros. However, every exchange of cryptocurrencies can already be a taxable event! Another common mistake is that not all necessary data is included in the evaluation, for example, because the transaction only concerns small amounts or because an exchange has disappeared and one no longer has access to its trading history.

Is there any software that can help me with my crypto tax return?

In many cases, a semi-automatic solution such as the one offered by our partner Accointing is the best choice. It allows you to import your own exchange and wallet data, determine the respective sources of received cryptocurrency and have the profit calculated. This result is submitted to the tax office together with the tax return.

However, there are cases, which are far off the standard, e.g. because unusual procedures were carried out:

  • Loan of cryptocurrencies from friends and relatives,
  • Delegated Proof of Stake,
  • Investments in DeFi-Products

These processes are very individual and can hardly be represented by software. A very high calculated (tax-free) profit or loss can also be a reason to have the software result checked one more time by a trained eye.

Your crypto tax return in Germany with WINHELLER

WINHELLER is an accounting firm specializing in crypto taxes and offers to process your activities with cryptocurrencies down to the smallest detail, calculate the profit made and prepare your tax return from scratch.

Together with a customized accompanying statement, we then submit everything to the tax authorities. We

  • handle all communication with the authorities,
  • clarify additional requests and
  • accompany you all the way to the final tax assessment.

Experience has shown that the tax authorities follow the estimate of your profits or losses provided by us. If this should not be the case, we will also file an objection and, if necessary, legal proceedings on your behalf.

Your experts in tax returns for cryptocurrencies

Are you looking for tax experts or tax consultants to support you in filing a crypto tax return in Germany? You need help to declare all profits/losses from trading with cryptocurrencies in a legally secure way? We are happy to provide you with our expertise. Your contact persons are

Benefit from our experience. Contact us by phone (+49 69 76 75 77 80), via e-mail (info@winheller.com) or via our contact form for the taxation of cryptocurrencies.

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Do you need advice on the taxation of cryptocurrencies? Our crypto tax experts will be happy to advise you! Please fill out our contact form for this purpose.

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