On 10 February 2026, the VAT knowledge group of the Dutch tax authority took a position on NFTs, under number KG:210:2025:18. A creator royalty fee on the resale of an NFT is consideration for a supply. This is the view of the tax authority, not a court ruling.
The facts
A Dutch business develops and sells unique digital images linked to NFTs. In the smart contract, it provides that the NFT can be traded only if the conditions of the contract are met and the royalty is paid. On every resale after the first sale, the business automatically receives a percentage of the price. It has no influence on that price. The contract cannot be changed afterwards, and its content is known to all parties.
The position
The question was whether the royalty is payment for a supply. The knowledge group answered yes. Seller and buyer cannot agree on the sale independently, without accepting the creator's conditions. Each sale therefore also creates a legal relationship with the creator.
What to check
- Creators who build a royalty into a smart contract should treat it as turnover for VAT, on this view.
- The position does not say what the supply is, where it is taxed or at which rate. Those questions remain, and the identity and status of an anonymous buyer can make them hard to answer.
- The outcome depends on the contract terms. A different design needs its own assessment.
- The knowledge group assessed a business established in the Netherlands.
mr. J. el Khalfioui LL.M.