Metaverse and NFTs: new technological challenges in direct and international introduction

Abstract

This article analyses and develops the tax implications of two emerging concepts: the metaverse and NFTs. In terms of the metaverse, it analyses the taxation of four digital businesses that can be performed within it, such as digital advertising, e-commerce, buying and selling user data and buying and selling digital objects through NFTs, while linking it with the legal concept of nexus or connection point. In turn, the specific case of NFTs is studied in depth, in particular, their subjection and tax qualification for Value Added Tax, in accordance with a recent binding consultation issued by the Directorate General of Taxes. The article also compares the North American and European regulations and the tax challenges that arise according to the interpretations offered by the tax authorities, namely the violation of the principle of neutrality in the art market and the clear indirect disincentive imposed by the European legislator to domicile companies buying and selling NFTs in European territory.