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The OECD is developing a global framework for applying value-added tax (VAT) to crypto assets, in a move that could reshape how digital assets are taxed across jurisdictions and bring long-awaited clarity to the fast-growing sector.
The framework, currently under construction by the OECD’s Working Party on Consumption Taxes, will provide guidance on how different types of crypto assets such as payment tokens, security tokens, non-fungible tokens (NFTs), and related services should be treated for VAT purposes.
“Taxation should follow where the asset is held, not distort business revenues,” said an OECD official involved in the initiative. This signals an intent to balance tax enforcement with market growth.
A notable trend is the OECD’s evolving view of crypto payment tokens, which are increasingly being treated similarly to fiat currency under VAT principles. Such a move could significantly reduce the complexity and compliance burden for businesses operating in the digital asset space.
The OECD aims to publish a public reference document within the next 12 months. Once released, the guidance is expected to serve as a benchmark for national tax authorities grappling with the challenge of applying traditional tax laws to borderless, decentralized financial technologies.
As crypto adoption continues to expand and regulatory scrutiny intensifies, the new VAT framework could play a key role in harmonizing cross-border tax treatment of digital assets, ensuring consistent application while reducing the risk of double taxation or tax evasion.
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