- The inquiry concerns tax and VAT obligations related to Play2Earn activities involving NFTs, BIGTIME tokens, and in-game items in the game Big Time.
- The Tax Council views all in-game activities as gambling, with winnings taxable at the time of acquisition under the State Tax Act.
- Activities outside the game are not considered business activities, and sales are taxed at the time of sale.
- The inquiry’s trading is limited, conducted in spare time, and not considered professional due to lack of financial market background.
- The Tax Council confirms the inquirer acts as a taxable person when selling and renting NFTs and BIGTIME tokens, aiming for consistent income.
- The economic activity assessment for VAT does not depend on whether transactions occur inside or outside the game.
- The use of BIGTIME tokens for creating cosmetic NFTs is not considered a taxable supply, thus not subject to VAT.
Source: info.skat.dk
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.
