Spain: Resolution in relation to NFT gross sales VAT remedy from the Spanish Tax Authorities
In short
The Spanish Directorate of Taxes (STA) have lately issued related tips on the VAT remedy relevant to the provision of NFT’s and the function on marketplaces intermediators, ruling V2274-22.
STA’s VAT strategy
Following the standards on ruling V0486-22, the STA thought of that a person which develops and subsequently gross sales NFTs ought to be thought of as an entrepreneur for VAT functions. Furthermore, the NFT sale by means of platforms/marketplaces ought to qualify as an Digital Provided Service (ESS).
The STA distinguish two totally different digital belongings:
The underlying digital file that may be digitalized ass an image, video, tune or another digital content material.
The NFT, which entails the Mental Property that’s going to be transferred.
The rationale of the STA treating the sale of NFT as an ESS depends on when promoting NFT’s, the STA perceive that what it’s transferred to the acquirer with the sale of an NFT, is the Mental Property of the underlying digital file relatively than the digital file itself as an present corporeal good.
The STA treats the sale of NFT’s by means of a web-based platform / market as a digital service (ESS), that, the place such market is positioned in Spain, the sale of NFT are topic to 21% VAT. Newly, the STA apply the presumption said by artwork 9 bis(a) of the IR 282/2011 and understands that the NFT proprietor sells the NFT to the platform so long as it’s not doable for the vendor to know the identification of the client and, due to this fact, can not adjust to tax obligations derived thereto.
Making an allowance for the above, the STA states that within the sale of NFT by means of a market there are two totally different provide of companies:
A provide of companies from the NFT vendor to the platform that can solely be positioned in Spain when the NFT market relies in Spain
A provide of companies from the platform to the NFT purchaser shall be positioned in Spain if (i) the platform can establish the NFT purchaser as a specific based mostly in Spain or (ii) the platform can establish the NFT purchaser as a taxpayer based mostly in Spain
The STA warns that digital interfaces, resembling the web marketplaces or (NFT market), have sure record-keeping obligations that enables the STA to verify whether or not the VAT has been accurately reported and paid.
Please notice that the binding session additionally refers back to the potential software of the U&E rule when ESS carried out from Spain are positioned exterior the EU territory however the efficient use and exploitation is carried out in Spain. On this regard, we want to point out that with the present Draft of the State Funds Invoice, the VAT legislation will exclude the applying of the U&E for ESS. If the present model cross into legislation the Spanish U&E rule will now not apply on ESS as of 1 January 2023.
Conclusion
NFT marketplaces based mostly in Spain shall be deemed to be performing acquisition and provide of companies (ESS) in Spain when performing as intermediators. So as to keep away from falling below artwork 9 bis(a) of the IR 282/2011 the NFT market ought to present the NFT vendor with the mandatory information of the NFT purchaser for the previous to find out the VAT location of the transaction and adjust to the corresponding Tax obligations.
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