Topic: [2014-08-21] apply to bitcoin transactions: Tax Office (Read 1248 times)
At this point it's going to be more beneficial to go pure Bitcoin if you get involved with Bitcoin at all because governments like Australia will want to take everything, they're trying to prevent capital flight, yes, Dark Wallet indeed.
Dark Wallet? Anyone? 
This could be a mess. Not clear how the credit will work. 10% GST surcharge will definitely affect local businesses.
No it wont ... all it will do is drive legitimate business underground because the compliance burden is nonsensically large.
This could be a mess. Not clear how the credit will work. 10% GST surcharge will definitely affect local businesses.
http://www.afr.com/p/technology/gst_to_apply_to_bitcoin_transactions_7acwDJhLFSLncgkYcLUH2J
Businesses accepting bitcoin will have to pay GST on the Australian dollar value of the transaction but tax credit will be generated, in effect, cancelling out the tax.
People who use bitcoin as everyday cash may in turn be charged GST by their supplier.
KPMG partner Julian Humphrey said the Tax Office’s decision, while expected, would likely double the compliance complexity for parties involved in bitcoin business transactions.
Businesses accepting bitcoin will have to pay GST on the Australian dollar value of the transaction but tax credit will be generated, in effect, cancelling out the tax.
People who use bitcoin as everyday cash may in turn be charged GST by their supplier.
KPMG partner Julian Humphrey said the Tax Office’s decision, while expected, would likely double the compliance complexity for parties involved in bitcoin business transactions.
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