Hi,
I was wondering if anyone had any info on how GST might affect bitcoins in Australia for the purchase and sale of bitcoins?
I know that Crypto X Change/Mr Bitcoin and spendbitcoins are both not resisted for GST with ASIC. How is this possible?
Is there some loophole that I am not aware of? Surly they must have a turnover of over $50k and if there mark up is only 10% wouldn't that all be eaten up with our 10% GST?
I am asking this question for two reasons.
1) I might personally breach the $50k hobby threshold this financial year
2) If I am trading BTC through a site like Crypto X Change I want to ensure that they are completely above board and wont be shut down by ASIC for tax issues, potentially losing all my money.
Any thoughts?
I was wondering if anyone had any info on how GST might affect bitcoins in Australia for the purchase and sale of bitcoins?
I know that Crypto X Change/Mr Bitcoin and spendbitcoins are both not resisted for GST with ASIC. How is this possible?
Is there some loophole that I am not aware of? Surly they must have a turnover of over $50k and if there mark up is only 10% wouldn't that all be eaten up with our 10% GST?
I am asking this question for two reasons.
1) I might personally breach the $50k hobby threshold this financial year
2) If I am trading BTC through a site like Crypto X Change I want to ensure that they are completely above board and wont be shut down by ASIC for tax issues, potentially losing all my money.
Any thoughts?
GST is only charged for goods and services, and the total tax amount for a single good should equal to 10% the total value added for the good. Therefore you don't have to pay GST for buying Bitcoins, but you need to pay GST when you use Bitcoin to buy goods and services from another Australian merchant.
It's like buying USD cash from the bank - you don't pay GST.
