What taxes are to be paid in relation to the sale and purchase of NFTs?
We have to differentiate in order to be able to give an answer from which perspective or with what purpose the sale and purchase of CFTs is carried out.
If we are simply users, who sporadically buy NFTs because we like them, but after a while we sell them?
In this case we should be taxed in our income tax return as a variation of patrimony. The amount for which I will have to pay tax will be the yield obtained in the sale, that is to say, the result of calculating the Sale Value of that NFT minus my Acquisition Cost of the same one. This gain or loss would be imputed in the savings base, which in case of being positive is taxed from 19% to 26% by brackets, and in case of being negative it would subtract us from other gains that we have by onerous variations. It is important to remember that we will be able to compensate the losses during the following 4 years, with its limitations. Be careful if we buy again the same NFT and we have made a loss, because if we do so, it could be understood that we are defrauding.
And if, on the other hand, we carry out this operation on a regular basis?
All those who are habitually making purchases of NFTs with the objective of subsequently selling them and obtaining a profit, may be carrying out a business activity. If this were the case, their IRPF taxation should be treated as an Economic Activity, therefore, the income would have to be calculated jointly for all the sales and purchases. That is to say, all the income minus the expenses.
The fact that it is considered an economic activity also generates that there are other obligations such as registration in the Social Security, accounting and quarterly filing of taxes.
It is important to point out that in our opinion, depending on the type of NFT, since at present neither the Tax Agency nor the DGT has issued any opinion and/or interpretation on NFTs, we understand that the commercialization of NFTs would be considered as a service provided electronically for VAT purposes, and therefore this entails certain peculiarities that should be analyzed, since probably the NFT issuer does not have the means to determine whether the acquirer of the NFT acts or not as a businessman or which is his residence.
If we were a company, how would we be taxed?
The difference is that as a society it applies the Corporate Tax, which therefore would tax the obtained result, in case of being positive, in 15% the first two years of activity (fulfilling certain requirements), and in 25% the following ones. In this case, the partners for the work carried out would receive a remuneration as salary that would be taxed in income to the general base, and if dividends were distributed we would find ourselves before a Patrimonial Gain that would be taxed in the base of the saving in the income.
For VAT purposes, it would be exactly the same as we have commented in the case of being a self-employed with Business Activity.
In the case that an individual is dedicated to the creation and subsequent sale of NFTs, what would be the taxes of the NFTs?
We understand that it would be an economic activity, even if it is on an occasional basis. Also if it turns out that there is a common project between several people, it can be a civil society or community of goods, tax partners in IRPF, or SCP to IS.
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