Askers develop digital art (digital images) which are sold as crypto art, also known as NFTs (non-fungible tokens). The questioner wishes to confirm whether the supply of crypto-art for cryptocurrency is exempt from VAT as a financial activity consisting of transactions relating to currency, cf. the VAT Act § 13, subsection 1, no. 11, letter d. In the negative case, the questioner would like confirmation as to whether crypto-art can be covered by section 30, subsection of the VAT Act. 4, cf. section 69, subsection 4, which deals with artists’ sales of their own works of art with a reduced VAT base.
The Tax Council cannot confirm that crypto-art is VAT-exempt according to Section 13, subsection of the VAT Act. 1, no. 11, letter d, since crypto art does not only pursue the purpose of being used as a means of payment and is therefore not covered by the VAT exemption on currency. Nor can the Tax Council confirm that crypto-art can be sold with a reduced tax base, cf. VAT Act section 30, subsection 4, cf. section 69, subsection 4, as it is only works of art that constitute goods that can be sold with a reduced basis. Given that the crypto-art is delivered electronically, in the sense of the VAT Act, it is not a question of delivery of a material good, and therefore it is not a question of delivery of goods, but of a service.
Source: skat.dk
