Wisconsin Tax Bulletin, No. 213, Wis. Dept. of Rev. (4/21). The Wisconsin Department of Revenue (Department) recently issued virtual currency guidance for Wisconsin sales/use, income/franchise, and withholding tax purposes “to inform or remind taxpayers of the tax treatment” – commenting that more individuals and businesses are investing in or using virtual currency these days. In doing so, the Department explains that virtual currency, such as digital currency and cryptocurrency, “is a digital representation of value that functions as a unit of account, a store of value, and a medium of exchange.” For state sales tax purposes, the Department provides that the sales price from the sale of virtual currency is not taxable because “the virtual currency represents an intangible right.” However, when virtual currency is redeemed for a taxable product, the transaction is completed and the retailer’s Wisconsin sales or use tax liability accrues at that time wherein “the tax is computed on the value of the consideration received by the seller, measured in US dollars as of the date and time that the virtual currency is received.”
Source Deloitte
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