How is an NFT sale taxed if I made the artwork?
As a creator you are not in the same position as someone reselling a token. What you sold may be closer to stock in trade produced in the course of a business than to the disposal of an investment, and the characterisation is what drives the income tax treatment. What exactly passed to the buyer matters too: a file, a licence to use it, an ongoing right, or a service you performed to order. Creators and traders of the very same token can sit in entirely different regimes. Work out what you actually supplied before asking what rate applies to it.
Do I charge sales tax on an NFT sold abroad?
Indirect tax runs on different rails from income tax. It turns on where the buyer is and on the nature of the rights transferred, neither of which the token itself tells you. That makes cross-border sales a place-of-supply question, and the answer can differ from sale to sale within one collection depending on who bought. The practical difficulty is evidence: a marketplace sale may give you a wallet address and nothing else. Decide what you will treat as evidence of the buyer's location, capture it at the time of sale, and record the basis for the treatment applied.
Is flipping NFTs treated as inventory?
It can be. A token bought to be resold at a profit, in a pattern of similar transactions, looks much more like trading stock than like a capital asset held for its own sake, and the characterisation is worked out from what was actually done rather than from what the asset is called. The same token can be inventory in one person's hands and a capital asset in another's. So the answer comes out of your own pattern of acquisition and disposal, the holding periods, and what you can show you were trying to achieve.
Does royalty income from NFT resales work differently?
Usually yes, because it arises from a right you kept rather than from parting with the asset. A creator who retains a resale entitlement is being paid for the use of something they still hold, which points towards a licence-type analysis rather than a disposal, and that distinction can change both the income tax treatment and the indirect tax position. The paperwork matters: what the collection's terms actually grant, and what obliges anyone to pay on a secondary sale. Establish where the entitlement originates and how it is enforced before deciding how the receipts are taxed.
How do I know where my NFT buyer is?
Often you do not, and that is the real problem with the place-of-supply question rather than a detail of it. A marketplace may pass on nothing but an address on a public ledger. So the work is to decide, in advance, what you will accept as evidence of a buyer's location and to capture it at the point of sale: whatever the platform discloses about the buyer, the currency and settlement route used, any registration or wallet information available, and the terms the sale was made under. A position supported by a stated method applied consistently is defensible. A gap is not.
Is an NFT a capital asset or stock in trade?
Either, depending on the holder and the activity. The same token can be inventory to the person who minted a collection to sell, a capital asset to a collector who bought one piece and kept it, and something else again to a dealer turning them over weekly. That is why the question cannot be answered from the token's description or its metadata. Look at what the holder did: how the token was acquired, how long it was held, how many similar transactions there were, and what the holder set out to achieve.
What is double taxation?
Double taxation means the same income being taxed by two authorities. It comes in two forms: juridical, where two countries each tax one person on one amount, and economic, where two different people are taxed on the same underlying profit — a company on its earnings and a shareholder on the dividend paid out of them. Relief comes from a treaty, a foreign tax credit, or an exemption, and which one applies depends on the income type. How to avoid double taxation sets out the routes.
How many days can I spend in a country before I become tax resident?
It depends on the country, and a day count is only ever the start. Many use a threshold in a tax year, some also look at averages across several years, and some have no day test at all and decide on where your home and life are. Two countries can both conclude you are resident, which is what the treaty tie-breaker exists to settle. Counting days without checking the tie-breaker is how people end up filing as resident nowhere. See the residency tie-breaker.
