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?

 

[borke]

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]

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.

 

[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]

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.⁤

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