Digital Marketplace Not Deemed NFT Seller for VAT: Lower Saxony Court Decision

• Digital marketplaces are not considered sellers of NFTs for VAT purposes.
• VAT law includes a deemed supplier rule for digital marketplaces involved in service provision.
• The rule applies if the marketplace controls service provision, such as billing or setting terms.
• The rule’s application depends on whether services qualify as electronic services.
• The case involved a plaintiff selling NFTs via OpenSea, not the digital item itself but a blockchain entry.
• The Fiscal Court of Lower Saxony ruled NFT sales as electronic services due to blockchain processing.
• The court noted minimal human involvement in the NFT transfer process.

Source: kmlz.de

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.

---

---