The Living Room of Satoshi was forced to close its doors after the Australian Taxation Office ruled that bitcoin was subject to the 10% Goods and Services Tax (GST) both when they purchase bitcoin from an exchange and when they spend the funds. Co-founder Daniel Alexiuc said that although Australia has yet to amend the legal interpretation that leads to the double sales tax on bitcoin transactions, the industry has evolved to accommodate the ruling. Consequently, the Living Room of Satoshi was able to resume operations.
The GST ruling has not changed, but the resourceful bitcoin industry has…There are now many more options for small Australian businesses like ours to buy and sell bitcoins internationally and locally in compliance with the tax ruling, which has allowed us to reopen for business.
However, Alexiuc still believes the double GST ruling is disastrous for the cryptocurrency community.
We still firmly believe that the double GST needs to be repealed for bitcoin to be ultimately useful as a currency in Australia, but for now we can continue operating as before.
As a result, the Living Room of Satoshi continues to support the “No Double GST for Bitcoin” movement, a coalition of bitcoin businesses–some physically located in Australia and others who have Australian customers–who oppose the ATO ruling.
What do you think of the Living Room of Satoshi reopening? Do you agree that the double GST is crippling for bitcoin’s uses as a currency? Comment below!
Images from Living Room of Satoshi and Shutterstock