Recent announcements have changed the way digital currency taxation is applied. The Government has declared that the GST treatment of digital currency (cryptocurrency) like Bitcoin, is now the same as using traditional currency like our Australian dollar for purchases of goods and services.
What do the changes in digital currency taxation mean for you?
Businesses that use digital currencies will no longer need to pay GST twice, as of 1 July 2017.
The Commissioner of Taxation acknowledges that affected taxpayers may lodge their BAS in accordance with either the current law or new law from 1 July 2017 until the corresponding amendments made to the GST Regulations are registered.
The below will apply if the GST Regulations are registered:
- Those who did not foresee the law, i.e., acted as per the current digital currency taxation law, will be required to lodge requests for an amended assessment.
- Taxpayers who correctly anticipated the law do not need to act.
Taxpayers may receive a refund of overpaid GST provided the amendment results in a reduction in liability (subject to restrictions).
If the amendment results in an increase to your liability, no tax shortfall penalties will apply, and any general interest charge associated with the shortfall will be remitted to nil for a period up until 28 days after the amending Regulations are registered.
Would you like to find out more about how these digital currency taxation changes could affect your business? Get in touch with a small business accountant from Taggart & Partners for all of your business tax planning Brisbane wide today.
Updated 17 May 2020
*** This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication. Publication date January 2018