The tax approach for NFT sales income is not yet clear, but there is a declaration obligation.
Tax Types
- Continuous buying and selling: commercial income
- One-time: capital gain
- For the artist: self-employment income
- Royalty (from subsequent sales): passive income
Tax Amount
- Income tax (15-40 percent slice)
- Minimum declaration limit
- Annual declaration
VAT
- VAT may be applied if there is a commercial sale
- Not clear yet
- Financial advisor support is required
Artist Side
- NFT sales created
- Royalty income (Smart contract) with)
- Royalty gain coverage
Practical Advice
- Keep all sales records
- OpenSea, Rarible transaction history
- Tax planning
- Financial advisor
Tax and intellectual property lawyer recommended.