Cryptocards in Ukraine sound like a magic wand: you take it out of your wallet, pay for a latte or an iPhone, and the system does everything. But behind this convenience hides a very interesting bureaucratic monster, which is already waiting for you with arms... well, and with a tax return.
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How do crypto cards work?
Everything is simple: you open a crypto card, top up your balance with your crypto, and then when you pay, it is instantly converted into dollars, euros or hryvnias. The store gets the fiat, and you get the check and a sense of progress.
But (and this is a big "but") each of your transactions is not just a purchase, but a special case of selling cryptocurrency with a possible profit. The tax official is already rubbing her hands: "What kind of conversion rate do you have?"
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What about taxes?
1. Transaction = event.
When you pay with a crypto-card, for example, for a burger for UAH 300, your Bitcoin$BTC is sold automatically at the current market rate. If you once bought this Bitcoin for UAH 200, the difference is your profit.
2. How does it work in practice?
Payment in hryvnias = crypto conversion → this is "income".
From it you have to pay 18% personal income tax and 1.5% military tax on the difference between the purchase price and the current value.
For example:
You bought 0.001 BTC for $30.
Paid for coffee for $50 with a card.
Your "profit" = $20, from which the tax office wants 19.5%.
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And if you just "kill"?
A logical question. And here begins the most interesting:
Will anyone notice?
As long as you use a crypto card, all transactions are transparently visible on the card provider's side (and probably the banking system). And if you spend large sums or often withdraw fiat, financial monitoring will definitely not miss you.
Fines.
You can "score" before the first check. And then not only a fine may arrive, but also the issue of non-payment of taxes for the entire period.
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How to live with a crypto card and not get caught?
1. Understand the risks.
If you spend $50 a month, it is unlikely that anyone will come after you. But if you buy a car or an apartment, it's a completely different story.
2. Keep records.
Yes, it sounds boring, but it saves. Write down when and for how much you bought crypto, as well as the exchange rate at the time of spending.
3. Declare income.
This sounds like the end of the "anonymous" crypt, but in Ukraine the law does not yet allow you to avoid it if you want to avoid problems.
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Is it worth getting a crypto card?
If you're ready to become a "crypto pioneer" and a bit of an accountant and lawyer, yes, this is a cool tool. But if you are afraid of paper wars and tax audits, it is better to use P2P or withdraw fiat in classic ways.
And the most important thing: remember, a crypto card is not a magic wand, but rather a test of your willingness to live "white". Well, or as carefully as possible.
