VAT on NFTs: The position of the EU VAT Committee
How VAT should be charged on trading in NFTs is of interest to taxpayers and tax authorities in various European Union countries, which sometimes take different approaches. On 21 March 2023, the EU VAT Committee published Working Paper no. 1060, entitled “Initial VAT reflections on non-fungible tokens,” touching on a number of issues concerning the VAT treatment of NFTs. As NFT transactions, including high-value ones, become more common, the tax treatment of these tokens and operations involving them, including on VAT grounds, should be fairly assessed, and the working paper may have a significant impact on this assessment.