NFTs are gaining more and more ground in the market, and their potential seems almost unlimited. In the first part of the article, it was explained how NFTs are defined and how they fit into existing VAT regimes. In this second part, we will examine whether the specific VAT consequences take sufficient account of the specific problems of this new technology and what challenges arise for market participants in the context of production, transmission, use and storage as well as trading of or with NFTs.
As explained in the first part of the article, NFTs should regularly be classified as a utility token within the scope of the current fields of application, whereby a subsumption under the definition of the investment token also appears possible with appropriate design. The FTA explicitly recognizes the existence of mixed forms. In its practice publication, it offers guidelines on how the production or issuance, trade, use and storage of utility and investment tokens are to be assessed in terms of VAT. However, there are still unanswered questions, as will be shown in the following.
Source: primetax.ch
