Crypto invoices deduct from tax in Spain

[borke]

Hello,Im wondering is there any way to deduct invoices that I sent in crypto. I get my salary on Skrill, and from Skrill I transfer it to a crypto wallet. Can I write off those crypto sendings as invoices I'm from Spain and I'm their tax resident.

 

[TheCryptoAnt]

lol

 

[Sols]

Are you trying to get paid in EUR (taxable income), buy crypto for yourself with that money, and then claim the crypto purchase as valid company business expense?

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This is the probably the answer to your question.

 

[borke]

Sols said:
Are you trying to get paid in EUR (taxable income), buy crypto for yourself with that money, and then claim the crypto purchase as valid company business expense?
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I got paid in Eur(taxable income) with that money I paid one guy in crypto(eth) from Skrill.So I withdraw funds from Skrill as crypto to his wallet .Can I deduct tax on this amount I sent him?

 

[Sols]

borke said:
I got paid in Eur(taxable income) with that money I paid one guy in crypto(eth) from Skrill.So I withdraw funds from Skrill as crypto to his wallet .Can I deduct tax on this amount I sent him?
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That should be fine, so long as the person invoiced you in a fiat currency and the amount you paid in ETH was at the time equivalent to that amount. If that's the case, it's the same as any other invoice and you just paid it with another payment method.

Ask your accountant for more detailed instructions, though.

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This is the probably the answer to your question.

 

[keloid]

Wow. So one could hypothetically receive an invoice from a third party and send them say, USDT, to pay off this invoice, and then count this a deductible business expense.
Could this system not be abused?
Like could the invoice in this scenario be a ...fictitious one...and the USDT to lands in the business owner's own wallet. Yet he gets the tax write off too. Obviously not legal but seems to be a viable solution for those so inclined?

 

[Sols]

keloid said:
Wow. So one could hypothetically receive an invoice from a third party and send them say, USDT, to pay off this invoice, and then count this a deductible business expense.
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Yes, of course. That's how businesses operate. Companies invoice each other all the time. That it's payable in crypto is just a minor accounting headache.

keloid said:
Could this system not be abused?

Like could the invoice in this scenario be a ...fictitious one...and the USDT to lands in the business owner's own wallet. Yet he gets the tax write off too. Obviously not legal but seems to be a viable solution for those so inclined?
Click to expand...

On a small scale, yes. At a larger scale, you risk eventually getting caught in a BEPS investigation. Depends on amounts and on jurisdictions involved.

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This is the probably the answer to your question.