Virtual Digital Assets (VDA), such as Cryptocurrencies and Non Fungible Tokens (NFTs), have evolved as a new class of assets globally. With speculation and investing interest increasing around these products, governments worldwide are interested in taxing the profits or gains arising from the transactions. However, the taxation of virtual assets comes with several challenges, which this research article wishes to bring to the attention of the researcher community. Determination of tax jurisdiction, rate of taxation, onus, and level of disclosures required, taxing on gifts, and taxing on mining operations are some dimensions from the perspectives of different countries that this paper wishes to examine. Tax evasion will be inevitable if the Governments are not proactive and take a clear policy stand in the early stages of their growth. Learnings from this paper add to the body of knowledge on taxation and will be helpful to Investors, Regulators, and governments in formulating better tax policies.