One of my clients is a successful artist living and working in the UK using both traditional and virtual media. He is VAT registered.
He has come to me because he is about to sell a non-fungible token (NFT) for a six-figure sum. The purchaser is a US citizen living in California.
His question is whether or not he should charge VAT. My initial assumption was ‘yes’ but I am far from certain. That is because I am not exactly sure what it is he is supplying for VAT purposes – is it an ‘electronically supplied service’ the transfer of intellectual property or something else?
That then leads to the question of where the place of supply takes place. I have just about got my head round crypto currency but NFTs are something else.
There must be other readers out there who have clients that have sold NFTs. Any...
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