SUT-122 - Virtual Currency

Virtual currency (e.g., Bitcoin) is intangible property for the purpose of Tennessee taxation. Therefore, when an individual purchases virtual currency, the transaction is not subject to sales or use tax or business tax. However, sales of taxable goods or services that are purchased with virtual currency are still taxable sales. The tax base for such transactions for sales and use tax and business tax purposes would be the advertised price of the taxable good or service.