VAT on NFTs UK (2025)
Do NFTs Have VAT in the UK?
Yes, under UK VAT regulations, HMRC usually sees NFTs as digital services. If you sell to UK buyers, you may have to pay ordinary VAT rates. The location of supply regulations define whether UK or foreign VAT applies. Some markets take care of VAT, but you still have to submit it correctly.
VAT on NFT Sales, Royalties & Digital Art
VAT applies to minting NFTs, selling digital art, and earning secondary sales royalties. HMRC advises on:
VAT on UK NFT royalties applies to taxable supplies.
Sellers must account for VAT on secondary NFT sales if registered.
Creative royalty VAT treated like licensing income.
We advise on HMRC NFT VAT compliance and tax optimization.
HMRC VAT Guidance for Cryptocurrency Transactions
The value-added tax (VAT) on cryptocurrencies doesn’t apply to the currency itself; it applies to the goods or services that the currency is based on. For instance:
Are you willing to take crypto as payment for an NFT? The NFT is subject to VAT.
If you sell digital services for crypto, you still have to follow VAT standards.
The way HMRC treats crypto VAT is the same as how it does regular payments.
Do I Need to Register for VAT to Sell NFTs?
You have to sign up if:
In 2025, your taxable turnover (NFTs and other goods and services) will be more than £90,000.
You sell to people in the UK and your NFT firm meets the VAT level.
VAT on Crypto Payments & Cross-Border NFT Sales
Are you selling NFTs to anyone outside of the US? How VAT is handled depends on where the buyer is and what kind of supply it is. Important rules are:
There may be EU digital service restrictions that apply to VAT on NFT sales to EU buyers.
How to show that the buyer is not in the UK for VAT: preserve proof like their billing address and IP logs.
VAT on crypto payments in the UK applies to the item or service, not the currency.
Why Choose Us
Our area of expertise is the HMRC-compliant VAT on NFTs and cryptocurrency. We ensure that the VAT rules are transparent, straightforward, and stress-free, from registration to reporting, allowing you to concentrate on the creation, sale, and expansion of your business.
VAT Calculation & Compliance Examples
We show a worked example of VAT on an NFT sale to a UK buyer versus an EU buyer. Our approach also includes “before and after” compliance case studies to highlight the difference correct VAT treatment can make. We provide a clear example table with columns for Sale Price, VAT Rate, VAT Amount, and Final Invoice Total.
Step-by-Step “How We Help” Process
We review your NFT and crypto transactions during Consultation. Next, we analyse your business model using HMRC VAT guidance. We help you register, invoice, and file VAT returns in Implementation. Finally, Ongoing Support updates you on HMRC VAT adjustments.
Latest HMRC Guidance (Live Updates)
We include a short section linking to gov.uk NFT VAT or HMRC guidance on digital services NFTs. This section notes the update for the 2025 VAT registration threshold of £90,000 and mentions the latest HMRC crypto VAT rules to show our guidance is always current.
Common Mistakes NFT Sellers Make
Common mistakes include not registering for VAT when crossing the threshold, misclassifying NFTs as exempt goods, not keeping evidence of buyer location, and failing to account for secondary royalties VAT.
Tools & Resources
We offer a free VAT on NFTs calculator to make compliance easier. Our resources also include a “VAT Threshold Checker” and a downloadable NFT VAT compliance checklist.
Who We Work With
We serve NFT and cryptocurrency clients like independent digital artists, project founders, online marketplaces, blockchain developers, crypto investors, and creative agencies. Our HMRC-compliant VAT guidance keeps your NFT firm compliant and efficient, whether you're starting out or growing.
Just three steps.
Book a Consultation with Our Cryptocurrency Tax Specialists Today
1.
Initial Review & Consultation
We’ll use your booked slot to understand your NFT or cryptocurrency business, review your transactions, and confirm your VAT position under HMRC rules.
2.
Custom VAT Roadmap
Based on our findings, we’ll create a clear action plan — covering registration, invoicing, cross-border rules, and royalty VAT treatment.
3.
Implementation & Support
Once you approve the plan, we’ll handle the setup, compliance processes, and ongoing HMRC updates so you stay VAT-compliant without the stress.
In crypto, mistakes cost money in tax, they cost even more. The right advice pays for itself
Your crypto gains should build your future, not your HMRC penalties.
Our team has helped traders, investors, and businesses across the UK successfully handle late crypto tax filings and penalty appeals. With years of HMRC experience, we make compliance simple.
Just three steps.
Book a Consultation with Our Cryptocurrency Tax Specialists Today
1.
Initial Review & Consultation
We assess your crypto tax situation, deadlines, and any HMRC correspondence you’ve received.
2.
Strategy & Documentation
Our experts prepare accurate calculations, gather required records, and create a compliance or penalty appeal plan.
3.
Filing & HMRC Representation
We submit your returns, handle all HMRC communications, and keep you updated until the matter is fully resolved
In crypto, mistakes cost money in tax, they cost even more. The right advice pays for itself
Your crypto gains should build your future, not your HMRC penalties.
Our team has helped traders, investors, and businesses across the UK successfully handle late crypto tax filings and penalty appeals. With years of HMRC experience, we make compliance simple.