2016-12-14 00:00:00TaxesEnglishLearn how the Canada Revenue Agency views digital currency, and review tax considerations for using digital currency in business...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Man-Paying-Digital-Currency-Transaction.jpghttps://quickbooks.intuit.com/ca/resources/taxes/digital-currency-barter-transaction/Paying With Digital Currency Is a Barter Transaction

Paying With Digital Currency Is a Barter Transaction

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If your business accepts digital currencies such as Bitcoin, the Canada Revenue Agency views the transaction as if it is barter and trade. When you trade or barter something for your business, you must report the fair market value of the item received or the service given as business revenue. In the case of a digital currency transaction, you should convert the digital currency to Canadian dollars, using the currency rate on the day of the transaction, and report that amount as income. If you spend digital currency on business expenses, you should also convert the funds before reporting the business expense on your return. The CRA recommends using exchange rates from the Bank of Canada.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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