Getting paid in crypto: how to record and tax it

Your invoice stays in euro

You invoice in euro as usual, with the normal VAT rate and all mandatory invoice details. That the client then settles in crypto is a matter of payment method, just like cash or a payment link. Your turnover is the amount on the invoice; the value you receive is converted at the rate at the moment of receipt, and the difference with the invoice amount is booked as an exchange result.

If you do agree an amount in a coin, it works like invoicing in a foreign currency: you always state the VAT amount in euro too, because the tax authorities count in euro. That is immediately the biggest practical risk: your VAT liability is fixed in euro, while the value of what you received can halve before you file.

Business or private: where the coin sits on the balance sheet

If you receive crypto as payment for your work, it enters your business and sits on your balance sheet as an asset. Everything the rate does afterwards affects your profit: if the value rises before you convert, that is profit; if it falls, that is a loss. You value the position at the balance sheet date and keep to the same method year after year.

Convert the receipt straight into euro and transfer it to your business account and nothing unusual happens; your records stay simple. Move the coin into private ownership and that is a private withdrawal at the value at that moment; from then on it falls in box 3 and follows the rules in box 3 for freelancers. The line between the two spheres works here as with other assets, see business or private assets.

What you must record

The burden of proof lies entirely with you, and a blockchain transaction is not a bank statement an inspector can simply read. Record per payment what happened and how you arrived at your rate. That takes a few minutes per transaction and falls under your normal seven-year retention obligation.

• The invoice the payment belongs to, with date and euro amount.
• Date and time of receipt, plus the rate used and its source.
• A screenshot or export of the transaction, with the address or transaction reference.
• The conversion into euro: date, amount received and the platform's fees.
• A year-end overview from your wallet or platform with your annual close.
• The rate on 31 December for valuing what you still hold.

Agreements to make in advance

If you want to offer this payment method, put a clause about it in your terms and conditions or in your quote. Record that the euro invoice amount is decisive, that payment only counts as settled once the euro value is in your account or wallet, and within what term the client must pay. Without that agreement you end up debating whether the invoice was fully paid when the rate drops.

Remember too that your client needs an ordinary invoice for their own records; they receive one from you in euro as always. For the rest nothing changes in your debtor management: an outstanding item stays outstanding until you have received the value.

Frequently asked questions