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ASK Bartercard Posted by ASK Bartercard
Asked on June 23, 2017 11:29 am
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What is the tax treatment for Bartercard transactions?

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ASK Bartercard Posted by ASK Bartercard
Answered on June 23, 2017 11:47 am
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Transactions are assessable and deductible for income tax purposes to the same extent as other cash or credit transactions. Therefore, the advantages and disadvantages are similar to normal cash revenue or expenses.

When an entity that is a member of a trade exchange makes a taxable supply to another member there is a tax liability, including goods and services tax (GST).

GST is paid and received by members in Trade Dollars. For the purposes of the tax laws, payments such as GST and income tax must be remitted to the IRD in New Zealand currency.  Please consult your accountant for further advice or download our free eBook The Accountants Guide to Bartercard which explains how Bartercard will work for your accounting systems.

Why not check out our blog: ‘How does Bartercard work with your accounting system’.

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