SARS Clarifies its Stance on Cryptocurrencies

in bitcoin •  6 months ago

This article was actually called:"SARS Clarifies its Stance on Bitcoin", but it should actually have been called "SARS Clarifies its Stance on Cryptocurrencies"
https://www.moneyweb.co.za/mymoney/moneyweb-tax/sars-clarifies-its-stance-on-bitcoin/


The tldr of the article is:

  1. "Goods or services can be exchanged for cryptocurrencies. This transaction is regarded as a barter transaction. Therefore, the normal barter transaction rules apply.”, which makes it sound like the government is considering charging VAT on items bought with cryptocurrency. Also later in the article there was mentioned that:“Pending policy clarity in this regard, Sars will not require VAT registration as a vendor for purposes of the supply of cryptocurrencies,” which sounds like VAT on crypto itself not on transactions where crypto was used, so this is rather a confusing point.
  2. "Sars said the onus was on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it was received or accrued." and they later mentioned that :“Failure to do so could result in interest and penalties.”. I wonder how this applies to steem?

Here is a reddit thread where I posted the link on reddit.com/r/southafrica. There are some very interesting comments: https://www.reddit.com/r/southafrica/comments/8ad8js/sars_clarifies_its_stance_on_bitcoin_moneyweb/

This comment was rather funny:


What are your thoughts on the matter?

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