Small Bitcoin spends, big headaches: why buying coffee triggers tax admin

The Bitcoin Policy Institute NZ argues for a tax exemption for Bitcoin. (Image: Depositphotos)

Mon, 17 Nov 2025

Buying a coffee might sound like a straightforward task, but it is the stuff of tax nightmares for people who use Bitcoin. Under current tax rules, individuals who spend Bitcoin must track the appreciation in value at the time of use.This is the case even for the tiniest of transactions.An event in Wellington on Wednesday evening, organised by the Bitcoin Payment Institute of NZ (BPINZ), had the aim of trying to change those rules. It was attended by MPs, as well as representatives from government departments and companies.BPINZ is lobbyin...

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