NFT-Ticketing and a tax trick

[Bialke]

First I have to say my idea is related to the german tax system. I do not know the tax rules in other countrys.

Ticket taxes:
In Germany the tax for a sold ticket for an event (sports, entertainment, cinema, zoo, ...) is 19 percent. So if you sell 1,000 tickets for 10 Euro you have to pay 1,900 Euro and make a profit of 8,100 Euro after taxes.

NFT taxes:
In Germany the tax for a sold NFT is handled individual, but mostly up to 45 percent. So if you sell 1,000 NFT's for 10 Euro you have to pay up to 4,500 Euro and make a profit of 5,500 Euro after taxes....

.... but:

If you hold your NFT's longer than one year the selling of the NFT's is tax free! So after one year you make a profit of 10,000 Euro after taxes.

--

So the idea is to set up two companys. One who is creating the NFT's which are representing tickets for an event 365+ days in the future. F.E. 1,000 tickets for 0.01 Euro per piece. So this company makes a profit of 10 Euro in total before taxes and have to pay 1.90 Euro taxes. The second company holds the NFT's for a time of 365+ days and then is selling the NFT's to people which wants to attend the event. In the case of 10,000 sold NFT's (for 10 Euro each) they make a profit of 10,000 Euro and have to pay no taxes (minus the 10 Euro they payed for the total of tickets 365+ days before.)

The question is: Is NFT ticketing a thing?

Are there other important tax tricks with NFT's and crypto?

How does it work in other countrys?

[Husires]

The question is: Is NFT ticketing a thing?
Are there other important tax tricks with NFT's and crypto?
How does it work in other countrys?

I am not an expert in taxes, but when a country decides to impose a 49% tax on each sale, this means a “soft ban,” and trying to circumvent it by not selling the NFT until after a year may not succeed.
The only way is to create a souvenir NFT that represents its value one year from the date of purchase, or to issue rare cards, but the problem here lies in the difficulty of selling them.

NFT market does not have a fixed value, and you can add the tax value to the price, as NFTs are like luxury goods, and whenever they are rare, their price increases, even if it too expensive. But I repeat, if the tax on NFTs in Germany is 49%, this is a “soft ban.”

[Tytanowy Janusz]

NFT market does not have a fixed value, and you can add the tax value to the price, as NFTs are like luxury goods, and whenever they are rare, their price increases, even if it too expensive. But I repeat, if the tax on NFTs in Germany is 49%, this is a “soft ban.”

Its a tax on profit from selling NFT not a tax on every transaction. If you can prove that you bought it at a higher price and recorded a loss, you will not pay tax on it. In some countries/states the income tax exceeds 40%, which is not the same as a "soft ban" on working in a corporation.

Are there other important tax tricks with NFT's and crypto?

How does it work in other countrys?

nfts are mainly used for money laundering.

1- you have stolen or illegally obtained funds - $1 million in USDT on ETH
2- you create an NFT on a fresh wallet and put it up for sale for $1 million
3- you buy with dirty money nft from a fresh wallet for $1 million
4- at this point you have legal funds in one wallet ($1 million) that you can tax and legally use, and in the other wallet you have NFT with a transaction history of $1 million (to be sold to a naive for $100k who will buy thinking that it's a bargain, because at a discount of 90%)

[Hispo]

You are ignoring one of the most important parts of such hypothetical plan: the event and the encouragement people is supposed to have in order to buy Non fungible tokens as tickect events.

On one hand, this even is supposed to be huge enough to make people who had never handled NFTs to go through the hassle of creating a wallet and learn how to use it.

On the other hand, there is the investment one would be supposed to do in order to attract a big audience, that alone could be translated to a required initial investment of several hundred of thousands of Euro (hire staff, hir security, rent a good place and equipment and the artists who are supposed to perform).

You would not get 10,000 people to get NFTs with a local band, gotta bring someone recognized.

[davis196]

Ticket taxes:
In Germany the tax for a sold ticket for an event (sports, entertainment, cinema, zoo, ...) is 19 percent. So if you sell 1,000 tickets for 10 Euro you have to pay 1,900 Euro and make a profit of 8,100 Euro after taxes.

NFT taxes:
In Germany the tax for a sold NFT is handled individual, but mostly up to 45 percent. So if you sell 1,000 NFT's for 10 Euro you have to pay up to 4,500 Euro and make a profit of 5,500 Euro after taxes....

What kind of ticket tax is this? Do you mean Value Added Tax(or VAT)?
I guess that this NFT tax is a weird form of capital gains tax, or maybe a revenue tax, which is different from the VAT. The rule of NFTs being tax free if they are sold more than 365 days of holding them seems weird to me. Are you saying that the German authorities are incentivizing the people to hold more NFTs? I'm surprised that NFTs aren't banned in Germany and the rest of the EU countries.
What if the authorities decide that those NFTs are tickets? I can assume that your weird tax evasion scheme won't work because the tax authorities aren't that dumb.

[Rikafip]

The rule of NFTs being tax free if they are sold more than 365 days of holding them seems weird to me. Are you saying that the German authorities are incentivizing the people to hold more NFTs? I'm surprised that NFTs aren't banned in Germany and the rest of the EU countries.

Afaik, if you hold any crypto (including NFTs) in Germany for more than a year you are exempt from paying the tax and I don't know what's so weird about it as some other countries have it too. For exmaple, in my country (Croatia) you have to hodl crypto for two years in order to avoid paying tax.

Regarding ban on NFTs, why would EU do that? Are they even banned in any country where crypto is legal? I am not fan of them at all and never owned one, but I don't think that banning them would be a solution.  

[Husires]

Its a tax on profit from selling NFT not a tax on every transaction. If you can prove that you bought it at a higher price and recorded a loss, you will not pay tax on it.

This means that the tax on NFT does not differ much from the taxes on the encrypted acts, so why do I see that there are promotional offers for NFT ticket cards and have attractive opponents, even though they sell them with a tax on profits? I saw an advertisement, buy a NFT card, about the same price as the entry ticket, but it has discounts on some purchases or the ability to enter some places for free or watch offers.

In some countries/states the income tax exceeds 40%, which is not the same as a "soft ban" on working in a corporation.

If the United States imposes a 50% tax on coal mines, it is in one way or another a ban on coal production and the transition to other sources.