Do you need to pay taxes on NFTs in Sweden?
Yes, in Sweden gains from NFTs need to be declared to Skatteverket. Not declaring taxes on NFTs is a criminal offense just like any tax evasion.
How much tax do you pay on NFTs in Sweden?
If you are solely trading NFTs then you will need to pay capital gains taxes in Sweden. NFT-taxes are submitted using the K4-form section D. Profits are taxed at 30%, whilst 70% of the losses can be deducted against your profits.
If you are creating NFTs (not just buying and selling), 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 income from hobby, then you can expect to declare it via Skatteverket's T2 form.
How to declare your NFT trades using Divly
The easiest way is to use a crypto tax calculator like Divly to handle your NFT taxes. Once the NFT transactions are imported into Divly, they are automatically included in the tax report (K4) that you download.
You can import NFTs automatically in Divly via the most popular blockchains like Ethereum and Binance Smart Chain. This makes the process much easier.
You can also import NFT transactions into Divly using the Universal Custom Import. 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.
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 File 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 more information in regards to crypto taxation in Sweden , feel free to read Divly's complete guide to crypto taxation in Sweden.
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.