Michigan Issues Guidance on Virtual Currency

Monday, November 2nd, 2015

 
 
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The Michigan Department of Treasury released guidance explaining what virtual currency is and how sales tax applies when virtual currency is used.

Virtual currency, such as Bitcoin, has a monetary equivalent to real currency. If a person purchases taxable property using virtual currency, the person has to figure out the dollar value of the virtual currency. This value must be calculated as of the day and exact time the sale occurred, and the seller must keep records of this value. Sales tax applies based on the dollar value of these sales.

However, virtual currency is not itself considered tangible personal property, so purchases of virtual currency are not subject to sales tax.

http://michigan.gov/documents/treasury/Tax-Policy-November2015-Newsletter_504036_7.pdf?20151027111821


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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.

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