You can argue that bitcoin is a currency and as such you should not pay tax. I'm not sure, but I think you have to pay tax on the fee they charge you. Since they are not registred in Qc, you have to fill a form to declare the amount of tax you should have paid. Also, any capital gain (and loses) should be declare.
Cheers
Topic: Tax when buying bitcoins in an exchange - page 3. (Read 6043 times)
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If you go to a bank and ask to buy some us dollars, do they charge you a 13% tax?
In Canada (and probably in a lot of countries) most services provided by financial institutions are exempt from tax. But running a bitcoin exchange does not qualify as a financial service.
I think exchanges can get away with tax because it's a transaction between two individuals and unlike enterprise individuals do not need to collect tax on a transaction (like on craigslist). Only the exchange itself as to charge the tax on the service they provide. But for a B&M shop to sell bitcoins for money? I'm sure the government will want you to collect tax on the total cost of purchase.
The exchange I'm using to buy bitcoins charge fees of 0.59% of transaction value. For example, if I buy $100 worth of bitcoins they will charge me $0.59.
If I buy a pair of boots for $100 I need to pay 13.925% in tax or $13.93 (I live in Quebec).
Why are bitcoins different than boot or any other product? Are they different or we are just playing in a gray area? I'm asking this question because I would like to know if it's possible for a brick and mortar shop to offer bitcoins in exchange of money. Customer walk in with fiat money and a smart phone or a qr-code and get out with bitcoins. That service is only possible if the store need to collect tax only on the service fees and not on the total purchase price.
thanks for your inputs
If I buy a pair of boots for $100 I need to pay 13.925% in tax or $13.93 (I live in Quebec).
Why are bitcoins different than boot or any other product? Are they different or we are just playing in a gray area? I'm asking this question because I would like to know if it's possible for a brick and mortar shop to offer bitcoins in exchange of money. Customer walk in with fiat money and a smart phone or a qr-code and get out with bitcoins. That service is only possible if the store need to collect tax only on the service fees and not on the total purchase price.
thanks for your inputs
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