87 / Discusses PA's sales tax on NFTs, with a spotlight on how they are defined and taxed. Surprisingly, regulations date back to 2016, but there was no retroactive enforcement before May 2022. The hosts highlight a loophole where NFTs linked to non-taxable items, like clothing, could avoid tax. They also delve into Su Squares, NFTs that allow pixel edits since 2018. Major queries raised include defining transfers and creations in the NFT world. The episode critiques PA's documentation style and juxtaposes regulations with real-world NFT products, underscoring potential inconsistencies.
Definition: “A non-fungible token, or NFT, is a unique set of software codes recorded on a blockchain, which is used to certify authenticity and ownership of a digital representation of something of value that can be bought, sold, and traded.”
The socks loophole “If the NFT is not a digital good as defined in 72 P.S. § 7201(m)(2) or is intended to grant ownership or use of a nontaxable product or service (for example clothing), the sale at retail of the transfer of ownership or a right to use an NFT is not taxable. “ // make your NFTs as socks
Some document that talks about it https://www.revenue.pa.gov/TaxTypes/SUT/Pages/Non-Fungible-Tokens.aspx
What meets the definition?
Definition: “A non-fungible token, or NFT, is a unique set of software codes recorded on a blockchain, which is used to certify authenticity and ownership of a digital representation of something of value that can be bought, sold, and traded.”
A watch phygital seems to fit
Strange list of examples
“If the NFT is not a digital good as defined in 72 P.S. § 7201(m)(2) or is intended to grant ownership or use of a nontaxable product or service (for example clothing), the sale at retail of the transfer of ownership or a right to use an NFT is not taxable. “ // make your NFTs as socks
