Italy Provides Clarity on VAT Treatment of Crypto Assets and NFTs

• Italian tax authorities have clarified the VAT treatment of crypto assets and NFTs.
• A case-by-case analysis is necessary to determine the function and purpose of crypto assets for VAT purposes.
• Crypto assets used as a means of payment for a VAT transaction should be calculated in Euros to determine the taxable amount and VAT.
• Certain cryptocurrency transactions, such as exchanges, mining, and staking, are typically exempt from VAT.
• Tokens can be taxable, exempt, or treated as vouchers for VAT purposes depending on their nature and use.
• NFTs are digital certificates bought and sold online using various currencies or crypto assets.

Source: bdo.global

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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