The Ministry of Finance explained that the owner of an NFT has no right to the real object. The buyer will have to pay value-added tax for the collectible tokens, not the seller of that crypto asset.
A Spanish citizen consulted the Ministry of Finance of his country about the legal aspects of non-fungible tokens (NFT) and Bitcoin. The government agency told him that the former would not participate like cryptocurrencies.
The regulator considers that NFTs do not qualify as cryptocurrencies and cannot treat them as fungible goods.
They also believe that an NFT having a replica in real life does not give the buyer the right to the object.
The Spanish Ministry of Finance explained that the transaction consists of the digital authenticity certificate that the NFT represents. Besides, the physical delivery of the image file or the associated digital file is unnecessary.
They give the same treatment to works of art or collectible objects. Concerning the taxes on those crypto assets, they establish that the amount will depend on the person or entity that buys the NFT.
If a company or a person sold the NFT as part of their professional activity, the buyer would have to pay VAT.
It is relevant to remember that NFTs are cryptographic tokens representing unique and unrepeatable assets limited in quantity. People also know those digital items as crypto collectibles as they have scarcity and rarity characteristics. For that reason, they are attractive for mass purchase and collection.
Spain is one of the countries that have taken steps to create a regulatory framework for cryptocurrencies. It has advanced laws that impose restrictions and limits on companies operating with Bitcoin and cryptocurrency investors.
Regulation Also Reaches Bitcoin and Other Cryptocurrencies
Despite the lack of clear legislation on NFTs, several rules seek to control that industry in Spain. The authorities believe that the crypto sector contributes to illegal activities like money laundering and terrorism financing.
For example, in November, the Central Bank of Spain opened a registry of virtual asset service providers. It requires exchanges and digital wallets to appear before the highest Spanish monetary authority.
In addition, the anti-fraud legislation of the Ministry of Finance puts Spanish Bitcoin exchanges at a disadvantage to foreigners. The latter do not have to fulfill any responsibility with the Spanish State.
However, one of the latest measures of Spanish regulators seems to attack Bitcoin holders in the European country. The Central Bank of Spain can prevent users from acquiring cryptocurrencies on exchanges authorized to offer services by sending fiat money.
Bitcoin and other cryptocurrencies have become increasingly relevant in the economy, which regulators in several countries have not overlooked. However, many legislators believe that crypto assets contribute to illicit activities and harm the environment.
Bitcoin is trading at around USD 39,724 and has accumulated a 0.6% gain over the last 24 hours. Its trading volume is above USD 15.05 billion, and its market capitalization is about USD 754.91 billion, according to CoinGecko.
By Alexander Salazar
