Tax and accounting advice NFTs

Are you professionally involved in the creation of NFT collections for sale on OpenSea or another marketplace? Or have you bought NFTs that you have subsequently sold at a profit or loss?

NFTs

Have you bought NFTs that you have subsequently sold at a profit or loss?
Do you know the implications of this operation on your income tax return?
Did you know that NFTs are copyrighted like works of art and cannot be reproduced?
Are you charging royalties for the sale of NFTs?

A non-fungible token (NFT) is a digital cryptographic token on the blockchain that represents a unique item. An NFT has many uses. It could be a digital asset in a game, a collectible piece of crypto art or even a real-world object such as real estate.

NFTs have solved the problem of creating the ability to collect decentralized digital property in the copy-and-paste world.

The main characteristic of an NFT is that it is not fungible, which means that it is not fungible. Each token is unique and cannot be exchanged in an equivalent manner for another token. On the contrary, cryptocurrencies are fungible, since you can exchange for example 1 BTC (bitcoin) for its equivalent in another cryptocurrency, being at the moment of the exchange the value between both identical.

If you are a company or individual who creates NFT collections for subsequent sale, you should be aware that there are significant tax implications for both VAT and personal income tax, which is why you should consult with cryptocurrency tax experts and comply with all your obligations before the Tax Agency. We can help you in this regard, as we are specialized in cryptocurrency advisory given our experience in this type of activities.