![]() ![]() However, this is not the case, and this misconception could land many businesses in hot water with the Australian Taxation Office (“ ATO”) if the appropriate steps are not taken.Ī countertrade transaction (also known as barter transaction, in-kind agreement, or contra deal) refers to the exchange of goods or services between parties where all or part of the payment is non-monetary. It is a common misconception that, due to countertrade transactions not being a monetary transaction, that there is no taxable supply or any tax liability applicable that the parties need to address, and thus that the transaction (and related taxation) does not need to be recorded or reported in the same manner as monetary transactions. It is very common to see, for instance, an influencer engagement on the basis of the provision of a brand’s products only. ![]() Everyone’s favourite topic is tax, right? Maybe not, but the exchange of contra as part of (or all of) the consideration paid in services agreements is becoming increasingly prominent in business-to-business transactions, especially in the marketing and advertising industries when brands are increasingly dealing with influencers and ambassadors, on lower value deals than traditional brand ambassadors may have in years gone by. ![]()
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