The California Board of Equalization recently issued a special notice discussing virtual currency as a payment method. According to the notice, sales tax applies to sales of tangible personal property for virtual currency (e.g. Bitcoin, Litecoin, Dogecoin, or Peercoin) just as it would in any other type of sale for consideration.
When a retailer enters into a contract and payment is via virtual currency, the measure of tax from the sale is generally the retailer’s advertised selling price of the product. The notice recommends that retailers accepting virtual currencies as payment should retain documentation on the amount for which they regularly sell the same or similar property to their customers when payment is made in US dollars (e.g. restaurant menu, price lists).