Barter should be viewed as you would your cash income.  There are no inherent tax advantages or disadvantages just because you use a barter trade exchange.  Barter is a marketing tool, not a tax tool.  Generally speaking, as with cash income, barter purchases which are business related, are deductible and conversely, barter purchases which are made for personal use are not deductible.  Naturally, your barter income (sales) and business deductions (purchases) should be accounted for within your tax return.  All City and State Taxes are always payable in cash to the seller.