NEWS

In the realm of online earning opportunities, it's becoming increasingly common for individuals to receive products or services instead of monetary compensation when engaging in advertising or promotional activities. If you're an online earner in New Zealand who has received products or services as payment for advertisements, it's important to understand the tax implications associated with this type of arrangement.

Firstly, when you receive products or services in exchange for advertising or promotional work, it falls under the category of a barter transaction. In New Zealand, barter transactions are considered taxable events. Even though no money has changed hands, the fair market value of the product or service received is still subject to tax. It's essential to recognise the value of the received item and report it as income on your tax return.

Maintaining accurate records is crucial when dealing with non-cash compensation. Keep a detailed record of the products or services received, along with their corresponding fair market values.

If you are registered for GST and receive products or services subject to GST in exchange for advertising, you must account for this properly.

Finally, seek professional advice to navigate the complexities of barter transactions and ensure compliance with tax regulations. By staying informed and properly accounting for non-cash compensation, you can effectively manage your tax obligations as an online earner.

 

Disclaimer

This information is intended to provide general advice only.  We recommend you discuss your specific situation with your Accountant.