Members should treat a Barter Trade Credits as they would a cash rupee from a tax perspective. Barter 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 ordinary cash revenue or expenses.

Trading may result in tax liability when selling and attract tax credit when purchasing. It may also involve the Fringe Benefits, Sales Tax and Capital Gains Legislation. 

"When an entity that is a member of a Barter Club makes a taxable supply to another member, there is a liability for tax, including goods and services tax."

Trading is not designed to be used as a means of tax evasion or avoidance. Barter Club members should treat sales and deductible purchases as they would treat a cash transaction. Opening a Trade account is similar to opening another bank or credit card account.

As the third party record keeper, Barter Club has a legal obligation to provide information, upon request, concerning members' trading activity to any government agency/department.