Fiscal subject related
An example of these transactions would be reselling of the unique "second-hand" digital goods, which is a novel concept that wasn't possible before the introduction of NFTs.
Current EU VAT Implementing Regulation does, to an extent, apply to resales of digital goods where they've been sold to private users before and are then resold through a metaverse marketplace. However, this legislation doesn't offer a solution for VAT accumulation that can happen in cases like the abovementioned.
Namely, the Regulation prescribes a margin scheme rules for the sale of second-hand goods in order to avoid VAT accumulation. However, the VAT directive also states that this margin scheme doesn't apply to the sale of services or digital products.
As there is an obvious legal gap in handling this matter, this represents a unique opportunity for businesses to work proactively with tax authorities on how to draft the most appropriate tax legislation for handling businesses in the metaverse environment.
Other news from Metaverse
New document was uploaded: Recorded webinar: MiCa - the newest EU crypto regulation and things you need to know
On October 10, 2022, Fiscal Solutions organized a free webinar on the topic of „MiCa - the newest EU crypto regulation and things you need to know“. The webinar was held by Nevena Glušac, legal consultant at Fiscal Solutions. This webinar will solve your doubts, such as what MiCa regulates and doesn’t regulate, the certification process looks, etc. Read more
New document was uploaded: NFT licence agreement
Animoca Brands, a game software company, has issued a set of NFT licenses available under creative commons in an attempt to create a legal framework that will ensure the enforceability of NFT royalties. This licence agreement sets out the terms relating to the grant of a licence in certain intellectual property, which is a collection of digital collectible tokens. The template for the NFT project licence Agreement, which can be used personally, commercially, and without any limits, can be found as follows. Read more
Updates to Italy’s Law on VAT and crypto-assets
Following the NFT VAT regulations in Belgium and Spain, Italy has established its stance on VAT and crypto-assets. Namely, Italy has confirmed that both crypto utility tokens and the creation of tokens such as mining or forging are exempt from VAT. The reason for currency mining or forging being VAT exempt is that there is no provision of services to an attributable customer, which is a requ... Read more
New document was uploaded: Proposal for a regulation for the Markets in Crypto Assets (MiCA)
On October 5th, 2022, following the trialogue between the European Commission, Council, and Parliament, the Permanent Representatives’ Committee agreed on a draft overall compromise package on the Proposal for the Markets in Crypto Assets (MiCA) framework. MiCA will be applicable across the EU and it will directly apply to all Member States, without the need to further implement it into national... Read more
The legislative process of the European Union’s proposal for the Markets in Crypto Assets (MiCA) nearing its end.
On October 5th, 2022, following the trialogue between the European Commission, Council, and Parliament, the Permanent Representatives’ Committee agreed on a draft overall compromise package on the Proposal for the Markets in Crypto Assets (MiCA) framework. This framework is the most substantial piece of crypto regulation within the EU yet, dealing first and foremost with cryptocurrency activity in... Read more
New document was uploaded: NFT's in Retail - web3, fiscalization, taxation and POS systems
The purpose of this document is to provide general information regarding web3, that is blockchain technology, cryptocurrency (“crypto”) and non-tangible tokens (NFTs). In addition to this, the document will provide insights into the tax treatment of transactions related to digital assets, such as crypto and NFTs, and more general terms. Read more