VAT Treatment of Non-Fungible Tokens

Abstract

In this article, the author analyses the VAT treatment of non-fungible tokens (NFTs), which is an innovative service within the e-commerce industry. VAT faces different challenges when it comes to taxing e-commerce transactions, and in order to have certainty on the tax implications it is important first to understand the business itself. The sale of NFTs might trigger additional payments, such as gas fees, royalties and marketplaces fees, which is addressed by the author in this article.