Use Of NFTs To Evade Tax Blocked Via Apple's New Policy Update

Tech giant Apple has no plans of exempting non-fungible tokens (NFTs) from its 30% "Apple Commission" on in-application purchases. It updated its App Store policy to prevent apps from incentivizing users to purchase items that the company can't tax.

Apple earlier introduced a 30% commission on NFT sales done via the Apple App store, and according to a recent update in the policy, the company has banned the integration of "buttons, external links or other calls to action that direct customers to purchasing mechanisms other than in-app purchase" into apps.

While apps can sell NFTs or services related to these blockchain-based tokens, "such as minting, listing and transferring," they are not allowed to persuade users to unlock additional "features or functionality" using NFTs. This has been implemented to remove the chances of app creators boycotting the 30% commission the iPhone creator has implemented.

As the Apple App Store does not facilitate crypto payments, it is also clear that platforms offering NFT mints will not be able to accept crypto in return. The guidelines also mentioned that apps are not allowed to provide "exclusive" access to NFT owners.

"Apps may not use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets, etc.," section 3.1.1. of its App Store rules read as of Monday.

Interestingly, such statements regarding cryptocurrencies were not mentioned in the version dated Oct. 22.

NFT firms have criticized Apple for imposing such a hefty tax on NFT sales via the App Store, according to The Information. Meanwhile, NFT marketplaces like OpenSea charge less than one-tenth of the percentage charged by the tech giant.

Apple's policies are simply discouraging users from using the Apple Store to purchase NFTs, and in the end, NFT projects will have no choice but to list their projects on marketplaces like Magic Eden and OpenSea, which offer significantly cheaper rates.