United Kingdom: HMRC Issues New VAT Guidance on Cryptoassets

• HMRC has issued new guidance on VAT treatment of cryptoassets (GfC2) for UK and overseas businesses dealing in cryptoassets or operating platforms/marketplaces where they are bought, sold, or exchanged.
• The guidance covers when a business must register for VAT, what customer information must be collected, place-of-supply rules, and record-keeping obligations for digital platforms and marketplaces.
• Cryptoassets are treated as digital representations of value transferred securely over public networks; different token types can have different VAT outcomes depending on their function and the underlying asset or supply.
• NFTs are not subject to a special VAT regime: their VAT treatment follows the VAT treatment of the underlying asset they represent (for example, digital art or a physical item).
• HMRC stresses there are no separate VAT rules for cryptoassets; VAT depends on what is supplied and how it is used, and following the guidance should reduce errors, VAT adjustments, and penalties.

Source: marcusward.co

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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