Quote from: perlboy on July 12, 2013, 06:00:40 AM

Quote from: zhoutong on July 12, 2013, 05:03:37 AM

Quote from: perlboy on July 12, 2013, 04:53:31 AM

Hi coinjar & Co,

Firstly, congratulations on launching a service which many in Australia will no doubt use. I do have one question though, you specify there's only 2% on the current spot price. For Australian customers does this include the GST element of 10%? If it does and given that once your revenue exceeds $75K you would be required to charge GST how is charging 2% on current spot price sustainable?

Thanks,

Stuart

Without a specific ruling from the ATO, we consider Bitcoin input-taxed supply, just like shares, bonds, derivatives, foreign currencies and precious metals. That means you have to pay GST for goods and services when you make purchases using Bitcoin.

The 2% fee itself already includes GST, because we charge 2% for the service we provide, and we will absorb it for now. (We may increase the fee to 2.2% if our profit is affected by GST, but there's no immediate plan.) Currently for CoinJar Checkout merchants, we give them access to a paper trail of GST paid, so they can easily claim GST credits if they are eligible.

(We are still in the process of GST registration, but the registration will be backdated to our incorporation date.)

Ok, and further to this since you're targeting the use of a tax ruling associated with financial services and intend to onsell them to end users (essentially acting a currency exchange) does this mean coinjar has an Australian Financial Services license and conversely is coinjar registered with AUSTRAC to ensure money laundering regulations are adhered to?

Stuart

And, we come back to this and link it with this: https://blog.coinjar.com/2014/09/30/how-the-new-ato-guidance-affects-coinjar-users/

I wonder what the ATO will think about prior GST collections.. Hopefully Coinjar will get an exception on past transactions.

Good luck cause Mr. ATO isn't someone you want to annoy.

Thanks,

Stuart