Australia bitcoin GST exempt Jul 2017
- May 8, 2017 | Richard Asquith
Australia has become one of the last major economies to exempt digital currencies such as bitcoin from indirect tax. It has announced in today’s federal budget that trading in cryptocurrencies will be exempt from 10% Goods and Services Tax from 1 July 2017.
Australia had resisted attempts to make bitcoin GST-free. Instead, it regarded it as a physical commodity, liable to GST like trading in oil, grains and similar products with an intrinsic value. In exempting bitcoin from GST, Australia will re-categorise it as a private currency and thus not subject to GST.
The EU, Japan, South Africa and most other major economies have already exempted bitcoin from indirect taxes.