European Union’s approach to VAT taxation of crypto assets

Abstract

In the past decade, Crypto assets have emerged as a relatively new and popular phenomenon. Cryptocurrencies and non-fungible tokens (NFTs) are the most commonly known Crypto assets. Cryptocurrencies are widely used for digital payments, investments, and storing value, while NFTs are unique digital assets that have gained popularity in the world of digital art and collectables due to their one-of-a-kind nature and unique value. The emergence of these crypto assets has revolutionized how value and ownership are perceived in the digital age. The focus of this master thesis is to evaluate the EU legal framework, both current and proposed, to determine its effectiveness in establishing a proper VAT system. In addition, the author conducts an in-depth analysis of the technical features and legal nature of crypto assets, as well as the VAT directive and principles. This provides a thorough understanding of the VAT application for cryptocurrencies and NFTs.