COMMONWEALTH OF AUSTRALIA
A New Tax System (Goods and Services Tax) Act 1999I, Timothy Dyce, Deputy Commissioner of Taxation, make this determination under subsection 9-85(2) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
Name of determination
1. This determination is the Goods and Services Tax: Digital Currency Conversion Determination 2018.
2. This determination applies on and from 1 July 2017.
Determination (who is covered by this determination)
3. This determination applies to an entity that works out the value of a taxable supply in Australian currency when any of the consideration for the supply is expressed in digital currency.
Manner in which an amount of consideration for the supply is worked out
4. An entity (you) converts the amount of consideration expressed in digital currency using the following formula:
Amount of digital currency x your particular exchange rate on the conversion day
Your particular exchange rate is:
- If the exchange rate is quoted in Australian currency, the rate from a digital currency exchange, or a digital currency website, or the agreed rate, whichever you have chosen.
- If the exchange rate is only quoted in foreign currency:
Choose an exchange rate with an amount expressed in a foreign currency from a digital currency exchange, or a digital currency website, or the agreed rate.
On the same day, convert the amount expressed in foreign currency (from Step 1) into Australian currency using the formula at paragraph 5 of Goods and Services Tax: Foreign Currency Conversion Determination (No. 1) 2017.
conversion day is the date you use to convert digital currency into Australian currency in accordance with paragraph 7.
5. You must use your particular exchange rate consistently.
6. Other than an agreed rate, your particular exchange rate must reflect the GST inclusive market value of the digital currency in Australian currency.
7. The following expressions are defined for the purposes of this determination:
agreed rate means an exchange rate agreed to between a supplier and a recipient of a taxable supply. The agreed rate only applies for supplies made under the agreement and for the period of the agreement.
conversion day is the date you use to convert digital currency into Australian currency under this determination:
- when you account for GST on a basis other than cash your conversion day is the earlier of:
- the day on which any of the consideration is received for the supply (the receipt date); or
- the transaction date/the invoice date (whichever you have chosen).
- when you account for GST on a cash basis, your conversion day is:
- the transaction date; or
- the invoice date; or
- the day on which any of the consideration is received for the supply.
- if you are a non-resident that is not a limited registration entity, and you are making inbound intangible consumer supplies, your conversion day is:
- a day specified in either paragraphs (a) or (b) of this definition for any types of supplies that you make (including inbound intangible consumer supplies); or
- for your inbound intangible consumer supplies only, the final day of the relevant tax period in which GST is payable (in which case, the conversion day for your other types of supplies is the day specified in either paragraphs (a) or (b) of this definition).
- if you are a non-resident that is a limited registration entity, your conversion day is:
- a day specified in either paragraphs (a) or (b) of this definition; or
- the final day of the relevant tax period in which GST is payable on your supplies.
digital currency means a digital currency as defined in section 195-1 of the GST Act.
digital currency exchange means an entity that provides trading platform/exchange for sellers and/or buyers of digital currency and provides exchange rates publicly.
digital currency website means a website that provides exchange rates publicly, without providing trading platform/exchange.
exchange rate means the unit of digital currency in Australian dollars or the unit of digital currency in foreign currency.
foreign currency means a currency other than Australian currency.
transaction date means the date you use for digital currency conversion in your accounting system.
8. All other expressions in this Determination have the same meaning as in the GST Act.
Dated: dd month 2018
Signed by Timothy Dyce
Deputy Commissioner of Taxation
Related Explanatory Statements:
DCC 2018/D1 - Explanatory Statement