ATO guidance on GST treatment of bitcoin at the top of agenda as Senate inquiry is officially announced
A Senate committee inquiry into bitcoin and other cryptocurrencies must examine the ATO’s guidance requiring Australian bitcoin exchanges to charge GST on the full value of the bitcoins they supply to Australian residents, industry figures say.
The Senate Economics References Committee inquiry, to be chaired by NSW Labor Senator Sam Dastyari, was officially announced on Thursday, October 2.
This week, bitcoin exchange CoinJar announced that from October 3 users that buy bitcoin at CoinJar will be charged 10% GST. The decision has placed Australian exchanges in a difficult position, making their services substantially more expensive than those from other countries.
‘In many ways the guidance has brought clarity to the position of bitcoin users in Australia,’ CoinJar says.
‘However, we don’t believe the ATO’s guidelines are ideal for bitcoin in this country. We believe in a simpler financial system and we will continue to work with the ATO to help them discover a fairer decision.’
This post was published at Smartcompany on 02 October 2014.