Australian GST registered businesses looking at accepting bitcoin payments should be cautious about a possible double GST liability.
While monetary payments and foreign exchange transactions are generally exempt from GST, the issue with bitcoins is that they may not qualify as “money” or “currency of a foreign country” for GST exemption purposes. Bitcoins are a virtual currency and thus are not the currency of any country.
For companies doing business in Australia, we examine the GST implications of bitcoin currency and let you know some considerations if bitcoin payments are in your future.
See on www.jdsupra.com