If you create and sell NFTs, such as images, in a professional, comprehensive and systematic way and the purpose is to make a profit, your activities may be considered a business. And any profit you make is taxable.
Royalties stemming from NFTs that you have sold are also considered taxable profit of your business. You have to pay tax on the value of the royalties at the time they are credited to your account and you have them at your disposal.
Business profits are taxed as personal income. You report the profit in box 111 in your tax assessment notice. Losses should be reported in box 112.
You should consider the VAT aspect if you create and sell NFTs.
Please contact us or request a binding ruling, if you're unsure how the sales of NFTs you create should be taxed.
If you have sold NFTs in previous years
If you have sold NFTs in previous years without reporting the profit or loss in your tax assessment notice, you must correct the notice for the relevant year.
Read more about correcting you tax assessment notice of a previous year.
Call us on (+45) 72 22 28 94 if you need help.
Read relevant rulings in Danish
Creation of NFTs was a business activity (SKM2022.101.SR)
Crypto art was exempt from VAT (SKM2023.329.SR)