Sales Tax on NFT Purchases

NFT Purchase
Non-fungible tokens (NFT) are intangible personal property.  The IRS notes cryptocurrency is property.  In most states personal property is subject to sales tax when purchased.  If you purchase the NFT from a vendor in a different state or country they may not be required to withhold sales tax on your purchase because they are not registered in your state as a business.  Use tax is the tax you owe typically on your personal state tax return when you did not orginally get charged sales tax on your original purchase.  When vendors reach a certain level of sales they are required to report all sales in a state even if they are not registered in that state.  NFT services like Open Seas may start to report this information to your state.  

Legally avoiding Sales Tax on NFT Purchases
If you are a resaler and typically buy and sell NFT's you can avoid your states sales tax on the original purchase of NFT's by obtaining a resalers license in your state.  You will be required to collect and remit sales tax on sales to customers in your state.

Verify this information for your situation
This blog is not tax advice so please check with your accountant and your state to determine the sales tax situation for your NFT purchase.  NFT and crypto taxes are still an emerging area for the taxing authorities so changes will continue to happen over time in this emerging industry.  Failure to comply with existing tax law can cause major problems for you in the future so ignoring issues like sales tax on NFT's could become a big problem for you in the future.