Accepting Crypto Payments: GST and Invoice Rules

More Australian businesses—from web developers to cafes—are starting to accept payments in Bitcoin, Ethereum, or Stablecoins (USDT). While it opens up a new customer base, it also opens up a new can of worms for your bookkeeping.

If you treat crypto like "cash", you are already making a mistake. Here are the rules for invoicing.

1. The Invoice Must Be in AUD

Even if you are being paid in Bitcoin, your Tax Invoice must show the AUD value of the goods or services at the time of the transaction. This is crucial for GST purposes.

Example: You sell a web design package for $5,500 (inc GST). The client pays you 0.05 BTC. Your invoice must state "$5,000 + $500 GST". You then record the receipt of 0.05 BTC as a "foreign currency" asset.

2. Is Crypto Subject to GST?

This is where it gets tricky:

• The Supply of Crypto: Trading crypto itself is generally "input taxed" (financial supply), meaning no GST is charged.
• Paying for Goods with Crypto: This is a taxable supply. You must remit 1/11th of the AUD value to the ATO as GST, even if you keep the Bitcoin and its value drops the next day.

3. The "Volatility Risk"

If you accept $5,500 worth of Bitcoin on Monday, and by Friday (when you pay your staff) it is worth only $4,000, your business takes the hit. The ATO still expects GST on the original $5,500 value.

Summary

Accepting crypto is a great marketing tool, but don't let it become a bookkeeping burden. Treat it as a foreign currency, track the AUD value at the time of sale, and you will stay on the right side of the ATO.