VAT — Crypto-assets & non-fungible tokens

NFT & VAT:
the framework set by the ruling of 14 May 2025

On 14 May 2025, the tax authorities published a ruling (referenced BOI-RES-TVA-000140, integrated into the BOFiP under BOI-TVA-CHAMP-10-10-40-50) setting out the VAT characterisation framework for transactions involving non-fungible tokens (NFTs). The principle adopted: NFTs are subject to no specific regime. VAT rules apply under the ordinary conditions. The major practical consequence: where an NFT is used as a certificate of ownership of a tangible or intangible asset, the transaction relates not to the token itself but to the underlying good or service, and it is the VAT characterisation of that object that applies. Because of their indivisibility and non-fungibility, NFTs are moreover excluded from the category of crypto-assets (payment, utility and investment tokens); they therefore do not fall within the banking or financial transactions exempt from VAT.

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— In brief
Ruling
BOI-RES-TVA-000140 (14 May 2025)
BOFiP doctrine
BOI-TVA-CHAMP-10-10-40-50 (integrated 14/05/2025)
Principle
NFT = certificate of ownership; characterisation follows the underlying object
Exclusion
Not a crypto-asset in the financial sense (banking exemptions not available)
Consequence
Case-by-case analysis; the VAT rules of the object apply (artwork, service, etc.)
— 01

The NFT is a vehicle, not a tax regime

The ruling of 14 May 2025 laid down a simple but structuring rule: an NFT is a digital certificate attesting to the ownership of a tangible or intangible asset. The transaction transferring an NFT from one person to another therefore does not relate to the token itself; it relates to the good or service to which the token refers. The VAT characterisation follows that logic: it is the underlying object that determines the applicable regime.

This framework has an important consequence: NFT transactions are excluded from the crypto-asset regime (payment, utility and investment tokens), and therefore fall outside the scope of the banking and financial exemptions. A sale of an artistic NFT is governed by the VAT rules applicable to works of art; a sale of an NFT granting access to a service is governed by the VAT rules of the corresponding supply of services, and so on.

The firm advises artists, platforms, collectors and companies issuing or trading NFTs on the characterisation of their transactions and on contractual security (VAT, place of supply, rate, possible exemption).

— 02

5 practical cases of NFT transactions and their VAT characterisation

Each case illustrates the diversity of characterisations depending on the underlying object.

1. Artistic NFT: a digital work of art

The NFT certifies ownership of a digital creation. The standard rate of 20% applies by default. The reduced rate of 10% (French Tax Code art. 278 septies; BOI-TVA-LIQ-30-20-100) is available only where the transaction qualifies as a transfer of copyright over a work of the mind. The special regime for works of art (French Tax Code art. 278-0 bis, I-c and 297 A) is reserved for tangible works within the tax-law meaning; an NFT, dematerialised by nature, does not qualify, unless it is inseparably attached to a tangible original.

2. Collectible NFT (card, virtual item)

The NFT certifies ownership of a digital collectible that does not qualify as a work of art (virtual cards, in-game items, etc.). The transfer follows the VAT regime of intangible goods or of supplies of services, depending on the precise characterisation; the standard rate of 20% applies in principle.

3. Ticket NFT (access to an event or service)

The NFT grants access to an event (concert, conference) or to a service (subscription, future benefit). The transfer follows the VAT regime of the corresponding supply of services: the rate varies according to the nature of the service (10% for live performances, 20% for other services). The place of supply determines the country of taxation.

4. NFT as title to a physical asset

The NFT certifies ownership of a tangible asset (real estate, a physical work, a luxury item). The transfer follows the VAT regime of the underlying asset. For a building: the real-estate VAT regime (new / existing / margin-scheme VAT). For movable property: the VAT regime for movable goods, with the rate depending on its nature.

5. Utility NFT (membership, governance): case-by-case analysis

NFTs granting access to a programme (exclusive membership, voting rights in a DAO, access to reserved content) require a case-by-case analysis of the real economic nature of the right conferred. An incorrect characterisation exposes the parties to a VAT reassessment; the drafting of the issuance terms is crucial to secure the applicable regime.

— 03

Our approach at the firm

The firm advises artists, platforms, collectors and Web3 companies on the VAT characterisation of their NFT transactions: analysis of the underlying object, identification of the applicable regime, contractual security, and interaction with the taxation of crypto-assets (French Tax Code art. 150 VH bis for individuals, BIC for professionals).

For cross-border transactions, the question of the place of supply and of whether the customer is a taxable person or not is central; the VAT territoriality rules (French Tax Code art. 259 et seq.) apply in all their complexity.

— Frequently asked questions

Everything you need to know before an NFT transaction

Is a sale of NFTs subject to VAT?

In principle, yes, unless the transaction qualifies for an exemption applicable to the underlying good or service. The ruling of 14 May 2025 (BOI-RES-TVA-000140) specifies that VAT applies to NFTs under the ordinary rules; it is the characterisation of the object to which the NFT refers that determines the regime (work of art, supply of services, movable property, building, etc.).

Do NFTs fall within the exemption for banking and financial transactions?

No. Because of their indivisibility and non-fungibility, NFTs are not attached to any of the three main categories of crypto-assets (payment, utility, investment). They therefore do not fall within the banking or financial transactions exempt from VAT. This exclusion is explicit in the ruling of 14 May 2025.

What VAT rate applies to an artistic NFT?

The standard rate of 20% applies by default. The reduced rate of 10% (French Tax Code art. 278 septies; BOI-TVA-LIQ-30-20-100) applies only where the transaction constitutes a transfer of copyright over a work of the mind. The special regime for works of art laid down in articles 278-0 bis, I-c and 297 A of the French Tax Code is reserved for tangible works within the tax-law meaning: an NFT, as a dematerialised token, does not qualify, unless it is attached to a tangible original transferred together with it. The characterisation must be analysed transaction by transaction.

How should VAT be handled on an NFT platform?

The intermediary platform follows its own VAT regime for its commissions (standard rate of 20%). For the transfer of the NFT itself between seller and buyer, the characterisation depends on the underlying object and on the status of the parties (taxable / non-taxable person). The reverse-charge mechanism may apply to cross-border B2B transactions.

What about VAT on cross-border transactions?

The VAT territoriality rules (French Tax Code art. 259 et seq.) apply. For supplies of services to a taxable person, the place of supply is in principle the place where the customer is established. For B2C transactions, specific rules may apply (VAT in the consumer's country for electronic services, etc.). A case-by-case analysis is essential.

Is an individual selling NFTs a taxable person for VAT?

Not in principle, provided the sale remains within the sphere of private wealth management. However, the case law on active marketing steps (CJEU Słaby/Kuć, 15 September 2011) may, by analogy, turn an individual who deploys significant resources to market NFTs into an occasional taxable person. Capital-gains taxation remains applicable in any event (French Tax Code art. 150 VH bis for individuals).

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