Bitcoin can be used to pay for goods and services, but direct acceptance varies by merchant, country and payment method and can change without notice. Before paying, check the merchant's current checkout options. Where direct payment is unavailable, a crypto-funded gift card may provide an alternative.
Many businesses accept crypto through a third-party payment processor rather than handling payments themselves, while some individual shops, restaurants and cafes accept it directly. Check the merchant's current payment options before relying on bitcoin at checkout.
Beyond direct acceptance, you can buy gift cards with bitcoin. Services such as eGifter sell gift cards for hundreds of well-known brands in exchange for bitcoin. Availability varies by service and region.
Bitcoin can also be exchanged for other cryptoassets, such as Litecoin and ether, or donated to charities. Some reward services offer bitcoin cashback when you spend online, but availability and eligibility vary by country.
One reason merchants are interested in bitcoin is cost, although payment costs depend on the method used. Card processors typically charge merchants a percentage-based fee, while bitcoin network fees vary with demand and transaction conditions. Payments over the Lightning Network are designed for fast, low-cost transfers, but the fee is not fixed.
For UK individuals, using bitcoin to pay for goods or services is a disposal for Capital Gains Tax purposes. You need to keep your own transaction records and work out the gain or loss in pounds sterling; whether any tax is due depends on your overall circumstances. Blockchain and exchange records can help, but they are not complete tax calculations. Recap can help bring your transaction data together and calculate your taxable gains and losses.
Need to sort out your crypto taxes? Use Recap, the privacy focused cryptocurrency accounting software to calculate the taxable gain or loss on your cryptocurrency investments!