The metaverse and non-fungible tokens are the two hottest terms in the emerging Web 3.0 landscape. Both present multi-million dollar business opportunities. And where there is money, sooner or later there will be taxes. Very few jurisdictions have published official guidance on how sales tax is applied to metaverse transactions. Does this mean that the metaverse is a tax-free space until new regulations are enacted?

What are the metaverse and NFTs?

The metaverse is an online space where anyone can create a virtual representation of themselves (an avatar) to socialize with others, conduct business, visit events, and do most of the activities we do in everyday life. The idea of ​​an immersive virtual world is not new. Virtual worlds like Second Life have been around for many years. Like…