Key facts:
The owner of an NFT has no right to its physical replica, if any.
Collectible tokens must pay Value Added Tax (VAT)
“NFTs would not participate in the nature of cryptocurrencies and other digital currencies”, this was the response of the Spanish Ministry of Finance to a query made by a creator of non-fungible tokens from that country.
In this way, it was found that for regulatorthe NFTs are not currency qualified and cannot be fungible.
Additionally, it considers that the sale of an NFT that has a replica in real life or an “existing tangible asset” does not entitle the owner to the objectonly on the token.
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“In short, the object of the transaction seems to consist of the digital certificate of authenticity that represents the NFT without the physical delivery of the image file or the digital file associated with it,” explained the Spanish Ministry of Finance.
Treatment similar to that given to works of art or collectible objects. Regarding the taxes related to the commercialization of this type of cryptoactive, it establishes that the amount to be paid will depend on the person or entity that makes the purchase of the NFT.
If the NFT was sold by a company or a person as part of their professional activity, the person who will have to pay VAT is the buyer of the token.
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It should be remembered that according to the CriptoNoticias dictionary of terms, NFTs are a type of cryptographic token that represents a unique, unrepeatable and limited asset in quantity. These digital items are also known as “crypto collectibles” because they possess scarcity and rarity characteristics that make them attractive for mass purchase and collection.
Spain has become one of the European countries that has made progress in creating a regulatory framework for cryptocurrencies. There, they have advanced laws that impose certain restrictions and limits on companies that operate with bitcoin and to cryptocurrency investors.
Regulation also reaches bitcoin and other cryptocurrencies
Although there is no clear legislation that regulates NFTs, cryptocurrencies do have several regulations that they try to control what happens in that industry in Spain.
For example, last November, CriptoNoticias reported that the Central Bank of Spain opened a registry of virtual asset service providers, which requires exchanges and digital wallets based in the country to appear before the highest Spanish monetary entity.
Another is the anti-fraud legislation of the Ministry of Finance, whichputs at a disadvantage exchanges spanish bitcoin against foreigners, who do not have to fulfill any type of responsibility with the Spanish State.
Although, one of the recent measures of the Spanish regulators seems to attack bitcoin holders in that country. According to a text published by the Central Bank of Spain, the financial institution, in some cases, can prevent a user from acquiring cryptocurrencies on exchanges or entitiesthat have been authorized by regulators to offer services, by sending fiat money.
This means that banks are authorized to block the account that is intended to be used to buy crypto assets.