New York – The New York State Department Of Taxation And Finance Excused Bitcoin Users From Paying Sales Tax

SALT Report 3533 – In the memorandum the Department states that convertible virtual currency, such as Bitcoin, are considered intangible personal property for sales tax purposes.  Therefore purchases or use of Bitcoins are not subject to sales tax.  However, the Department also states “if the party that gives convertible virtual currency in trade receives in exchange goods or services that are subject to sales tax, that party owes sales tax based on the market value of the convertible virtual currency at the time of the transaction, converted to U.S. dollars. If the party that trades property or services in exchange for receiving convertible virtual currency gives the other party a sales slip, invoice, or receipt, the first party must separately state the sales tax due in U.S. dollars on the sales slip, invoice, or receipt.”

For Further Information:

NY Memorandum On Transactions Using Convertible Virtual Currency