Fake Letters Demand 19% VAT on Crypto Purchases in Germany

The Federal Ministry of Finance in Germany has issued a warning about fake letters claiming to be from the ministry, demanding 19% VAT on cryptocurrency purchases. The letters are being sent to investors and claim that a company selling cryptocurrency is authorized to collect the tax.

The ministry has listed these letters as forgeries on its warning page since September 1, 2026. The scammers use real transactions and official terminology to make the letters seem credible. They also exploit the fact that trading platforms have been reporting user data to the tax authorities since the start of 2026.

However, exchanging euros for Bitcoin and back is exempt from VAT under German tax law. This has been settled in a court case from October 22, 2015 (C-264/14), known as the Hedqvist case. The Federal Ministry of Finance adopted this judgment into German administrative practice with its circular of February 27, 2018.

Investors are advised to be cautious and not pay any money or click on links in these letters. They should also check if the sender is a tax office and if the payment is meant to go to a tax office account. The ministry does not authorize anyone to collect taxes that do not exist, and the exemption for exchanging cryptocurrencies applies to the exchange itself.