Sales Tax Applies to Sales Paid in Virtual Currency in California

Wednesday, June 11th, 2014

 
 
Virtual currency.
Share
Link
California
General

The California Board of Equalization ("Board") recently released a special notice on sales paid for with virtual currency.

Virtual currencies include Bitcoin, Litecoin, Dogecoin, and Peercoin. California sales tax applies to sales paid for with virtual currency the same way it applies to sales paid for with traditional currency.

The Internal Revenue Service does not consider virtual currency to be legal tender. California therefore treats sales paid for with virtual currency as sales paid for by barter or exchange. The tax base is generally the retailer's advertised selling price. Retailers should keep records on the price for which they regularly sell the same or similar property when payment is made in United States dollars.

The Board does not accept virtual currency as payment for taxes.

http://www.boe.ca.gov/news/2014/l382.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...

Economic Nexus in Utah

Wednesday, August 1st, 2018 -Effective January 1, 2019, certain out-of-state sellers will be required to collect and pay Utah sales or use ...