NFTs and VAT: the taxation of cryptoassets

NFTs have recently made headlines as unique digital items that can be kept on the blockchain.

This new world of commercial activity has caught my attention with a particular interest in how NFTs are defined and whether sales of certain NFTs should be subject to VAT/GST.

First, what is an NFT (Non-Fungible Tokens)? 

Well, it is what Twitter founder Jack Dorsey sold earlier this year for $2.9m. He sold the first tweet published and that tweet was sold as an NFT, or Non-Fungible Token.

An NFT is a unique cryptoasset that can, among many other possibilities, be an original piece of digital art, a piece of audio, a game or that first tweet ever published. Ownership of an NFT is also recorded on blockchain giving authenticity to the piece of art, audio, or other forms of data.

Source Iman Deschâtres

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