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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.
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