This article is intended for Australian members. If you're looking for instructions for CoinJar UK, visit this article.
Goods and Services Tax (GST) for Australian residents may apply to some of CoinJar's services. As of July 2017, the Australian government requires the collection of GST on imported services and digital products.
When you buy and sell cryptocurrency within your CoinJar account, you are trading directly with CoinJar as principal. CoinJar quotes an exchange rate and is buying/selling cryptocurrency from/to you in its own capacity. Sales and purchases of cryptocurrency are not subject to GST from 1 July 2017. As such, GST does not apply when you buy/sell cryptocurrency from/to CoinJar directly.
When you trade on CoinJar Exchange however, you are buying and selling cryptocurrency from other customers at a price nominated by you. CoinJar acts as an agent by matching your buy or sell instructions with instructions from other customers. CoinJar charges a fee for this matching service and is deemed to be making taxable sales of brokerage or facilitation services to its customers. CoinJar is therefore required to collect GST from Australian residents on those fees.
Adding your Australian Business Number (ABN)
GST on cross-border transactions will not apply where you are an eligible Australian-based business recipient and have provided your Australian Business Number (ABN) to CoinJar prior to the transaction.
If you have an ABN for your business and are registered for GST, please add it to your CoinJar Settings to ensure your tax information is accurate.
CoinJar will provide you with valid receipts where GST has been collected from you. You can view and download receipts within your CoinJar Exchange account.
In general, CoinJar is unable to offer tax advice. Please reach out to a tax professional for further assistance.