Australia Business with bitcoin transactions will be levied on the consumption tax

Australia Business with bitcoin transactions will be levied on the consumption tax

The Australian Taxation Bureau recently issued a statement, Australia will be on the use of digital currency (bitcoin) buy goods and services business tax. Buyers and sellers use bitcoin transactions, or to be issued two tax invoice. The personal consumption of less than 10 thousand Australian dollars (about 57 thousand yuan) will not be taxed.

Experts said that the document issued to limit bitcoin in use in electronic commerce market. At present, Australia has about 1000 companies using bitcoin transactions.

The rule of Nature Publishing and Singapore in January when the tax code is similar to that of the bitcoin community reaction, in short, bitcoin in Australia will not be regarded as “money”, the tax treatment and other non cash or barter similar. While in Singapore, this tax has caused the problem of double taxation in some bitcoin transactions.
The tax code could affect most of Australia for bitcoin and Australian dollars (AUD) trading company.
该税收准则的标题为 —— “澳大利亚加密货币税务处理 —— 特别是比特币”,四页的纲领文件只是“一般性质”的草案,事实上并没有法律约束力。
Definition of terms, setting out the rules
The paper points out that “bitcoin transactions similar to barter transactions, the tax treatment of similar”.
The tax bureau is of the opinion that bitcoin is not money, not foreign currency, bitcoin supply is not for the goods and services tax financial supply, bitcoin is still in the capital gains tax as an asset to the.
Such as stocks, bonds, loans, and foreign currency derivatives are Australia existing regulations for the following “money” or “financial supply”, and without consumption tax.
These definitions will inevitably cause some controversy, bitcoin bitcoin industry that should be defined as money. If bitcoin is defined as “money”, “foreign exchange” or “financial supply”, then the transaction will not produce the consumption tax, in fact, most of the world’s tax authorities and regulators so far would have bitcoin definition for money.
From Australia bitcoin community reaction
Australia bitcoin Association (BAA) said that the tax code is disappointing, it should be better, ironically, the association also appreciated before tax bureau level.
President Jason Williams said in a statement: “the Association agreed that bitcoin should be regarded as currency, its tax treatment should also be the currency level, double the consumption tax will adversely affect the bitcoin economy, this may force the bitcoin related businesses to move to other more favorable jurisdiction.” While bitcoin wallet provider CoinJelly CEO Ashley King said an optimistic attitude, he believes that the tax code may actually contribute to the bitcoin in the mainstream economy.

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