Guide to declaring NFT crypto taxes in Sweden (2022)
Creating, trading, and selling NFTs are considered taxable events, and declaring them correctly is not always straightforward. Since this is an increasingly common issue our customers face, we have decided to write a detailed guide with this topic in focus. So if you are wondering if and how you should declare your NFT proceeds in Sweden, then this guide should serve as a good information source. We will update it regularly as more information becomes available.
Updated: Aug. 2, 2022, 1:16 p.m.
Any tax-related information provided by us is not tax advice, financial advice, accounting advice, or legal advice and cannot be used by you or any other party for the purpose of avoiding tax penalties. You should seek the advice of a tax professional regarding your particular circumstances. We make no claims, promises, or warranties about the accuracy of the information provided herein. Everything included herein is our opinion and not a statement of fact.
How are NFTs taxed in Sweden?
If you are solely trading NFTs (not creating and selling them as income), they should be treated just like any normal cryptocurrency when declaring taxes in Sweden. They are declared using their unique identifier in the K4 report with the associated cost basis (omkostnadsbelopp) and sale price (försäljnignspris). Profits are taxed at 30%, whilst 70% of the losses can be deducted against your profits.
If you are creating NFTs, it could be considered income tax. This means that the declaration process is quite different and will depend on whether your activity is considered that of a hobby or a business. More information regarding this can be found in the next section of the article.
NFTs are a new phenomenon when it comes to taxation. Thus, whether you have been trading or selling NFTs as income, it is good practice to submit an Öppet Yrkande when declaring NFT taxes. This reduces the chance that you would need to pay a tax surcharge if you made a mistake. To submit an “Öppet Yrkande” when declaring your taxes, navigate to 17. Övriga Upplysningar in Skatteverket and write an explanation of the methods you used to calculate your NFT taxes.
Is your NFT income classified as a hobbyist or as a business?
As mentioned above, the act of creating and selling NFTs can be considered income. If you think this applies to you, this section might provide useful information. If you have solely traded NFTs, then you can skip this section.
Creating and selling NFTs as income is taxed differently depending on whether you are an individual selling digital art as a hobby versus a for-profit organization/business. We are unsure what the exact criteria are to be considered a hobbyist or a business, but it should be assessed with care. It will likely depend on the specifics of your situation. If you are unsure about your situation, you can always contact Skatteverket directly or seek professional tax advice.
A similar classification approach is used for mining crypto, which has been more defined. Some of the criteria of whether mining activities are considered as a hobby or business may indicate how this assessment is made for NFTs:
The operations are conducted regularly in a professional and cost-effective manner over a longer period of time with appropriate equipment.
The operations can be expected to generate a surplus over the entire financial calculation period.
If your NFT sale activity classifies as a hobbyist, then you can expect to declare it via Skatteverket's T2 form.
How to declare your NFT trades using Divly
At Divly, we have started supporting a process to handle NFT taxes for trading. Once the NFT transactions are imported into Divly, we will automatically ensure that they are included in the tax report (K4) that you download.
Currently, you can import NFT transactions into Divly using our Universal Custom Upload. We have provided an example that can be downloaded here that features both buys and sells of NFTs. Below is a step-by-step guide on how to import them correctly.
You can also import NFTs automatically via the following wallets:
- Ethereum & Tokens
- Binance Smart Chain
- Metamask (ETH)
- Metamask (BSC)
Step by step guide to import NFTs using Universal Custom Upload
Download Divly’s Custom NFT CSV file.
Fill in all the transactions that you would like to upload to Divly. Each transaction requires its own row. Always use the notation “NFT-” when importing your NFT as given by the examples in the file. The amount for an NFT should always be “1”.
Login to Divly and navigate to the Wallets page. Search for Custom Upload amongst the wallets.
Drag and drop your edited CSV file to where it says Upload CSV. Divly will import the NFT transactions.
Further questions or feedback?
We hope this guide was useful. If you need support, feel free to contact us via our online chat. We will be able to guide you if you have any questions!
Automate your crypto taxes with Divly
An easy way to save time is by using automation services like Divly. Divly does all the calculations for you so you can spend more time on other things in life.