I was just charged 21%, yes, you read it right, 21% on my Crypto purchase in taxes on the additional service fee charge of almost 9 Euros. The service thing they've got going on is also percentage based, so just like the sales tax, the more you invest, the more they leech, oh I mean "charge you for their protective services ". This comes ironically just days after I wrote this: https://www.publish0x.com/geo-political-economical-developments/new-eu-law-must-ensure-full-traceability-of-all-crypto-and-b-xglpeee
A little background into the story: Depending on where you are, there are more and more regulated sites that abide by stricter rules, some even charge you a certain percentage to automatically pay taxes on. Netherlands like many European countries has one of the highest and most ludicrous sales taxes in the world. I wanted to prepare for the Inter Milan fan token launch, though I never really cared about these football fan tokens, the Inter Milan token is somewhat different and will be displayed on the front of Inter's jersey next season https://www.inter.it/en/news/2021/07/21/socios-new-inter-shirt-partner.html
So I decided to go for it and hold on to the Inter tokens to see what the price movement would be after the pre-sale ended and maybe even for the first possible exchange listing. In order to do so I had to get some Chiliz for the first time ever, the token necessary to convert for these fan tokens. I could either get it on some exchange, or directly at Socios where all these fan tokens are and not yet released tokens can be waited on and bought before they hit any exchange. I foolishly did the latter, primarily because I didn't want to sell any Ethereum or Bitcoin for Chiliz since I have to hold on to it for a while before the Inter token becomes available and considering the rather downward price movements these days, who knows how much value in BTC I'd lose till then. Upon the actual process itself, Socios does not inform you that they charge your national sales tax, they only display a 'service fee' which added 8.95 Euros in my case for the 1000 CHZ I wanted to get. That's almost 9 Euros for a total sum of 213 Euros which makes it a 4.2% fee. Already noticing this was somewhat on the expensive side considering the CHZ price at the time, I thought maybe I'd be better of if I deposit the money to Binance and via there trade for some CHZ to then send directly to my account. I then found out that Binance's temporary suspension of the instant banking deposit, is a bit more permanent than they might like to admit: https://news.bitcoin.com/binance-suspends-euro-deposits-sepa-bank-transfers/
Alright, just do it, pay the ***** fee, I don't want to regret not getting a potential moonshot just over a few Euros. So, after the purchase was complete:
I tried to get a response from Socios as to why they charge sales tax on a Crypto investment and exactly why they charge an additional fee just to buy on their site since CHZ is already available on numerous exchanges, but unfortunately didn't get a reply from neither Socios or Chiliz.
But there is a lesson to be learned here. The longer you wait with investing in Crypto, the more expensive it will be for you to do so in more ways than one, as more and more governments are pressuring exchanges in abiding by these rules. Though staggeringly unfair, cause it's Crypto, paying approximately 1/20th in taxes and fees on something that can loose 50% value in 48 hours is ludicrous, especially considering that if it gains 50% value, they want to tax you again for the profits. I said it before and will say it again; These rules they are implementing on Bitcoin and Crypto have practically nothing to do with "safety" or "fighting crime", it is to maintain their economic dictatorship they have people living under for centuries now, they very thing Bitcoin is fighting back against.
Viva La Bitcoin Revolucion!