The Puerto Rican Department of Treasury is interested in NFT sales. Last month, the organisation suggested a new change to the Sales and Use Tax law that includes the concept of NFTs as a taxable asset class. With this new amendment, NFTs would be included in the specific digital products group. The amendment then defines the measures taxpayers must take to disclose NFT transactions. It states that the information must include the source of money and the addresses of the buyers. This is the government’s response to the rise of (NFTs), which has generated billions of dollars in sales worldwide.
While most analysts believe there are benefits to identifying NFTs and integrating them into this reform, most believe that implementing these rules will be challenging for the Treasury Department. According to CPA Giancarlo Esquilin, the existing definition of the legislation project is inadequate.
Esquilin also admits that Puerto Rico may be the first U.S. jurisdiction to treat NFTs as taxable products, which may lead to others following the same path and proposing better regulatory frameworks. According to Juan Pedreira, a tech expert, the question of how the government would audit the sale of these assets remains unanswered.
