CRA: Cryptocurrency May Be Accepted as Payment for Taxable Goods or Services
Calculating Cryptocurrency Value for Tax Returns
The Canada Revenue Agency (CRA) has announced that cryptocurrency may be accepted as payment for taxable goods or services by a GSTHST registrant. Individuals and businesses will need to calculate the value of their cryptocurrency in order to file their tax returns accurately.
GSTHST Implications for Cryptocurrency Transactions
According to the CRA, when a taxable property or service is exchanged for cryptocurrency, the value of the cryptocurrency at the time of the transaction must be used to calculate GSTHST.
GSTHST may also be applicable on business transactions where payment has been accepted in cryptocurrency. Bitcoin and other virtual currencies are treated as financial instruments for GSTHST purposes, meaning that no GSTHST is charged on the exchange of these currencies themselves.
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