VAT and Cryptocurrency
VAT treatment of cryptocurrency is specific and often misunderstood. The exchange of crypto for fiat currency is exempt from VAT, but services provided in connection with crypto may not be.
We advise crypto businesses on VAT registration, compliance and planning. If you accept crypto payments, provide crypto services or operate a crypto related business, we help you understand your VAT position.
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Our VAT Services for Crypto Businesses
Comprehensive support to ensure your business remains compliant while maximizing efficiency.
What you get:
VAT Registration
We advise whether VAT registration is required or beneficial for your crypto business. We handle the registration process and set up your systems for compliance.
VAT Returns
We prepare and submit your VAT returns, ensuring crypto transactions are treated correctly. Mixed supplies of exempt crypto and taxable services require careful handling.
Planning and Advice
We provide ongoing VAT advice as your crypto business grows. International transactions, partial exemption and input tax recovery all need specialist attention.
Free Crypto Tax Consultation
During your free 20-minute crypto tax consultation, we will:
Review your crypto activity across exchanges, wallets, staking, and DeFi
Identify what needs to be reported to HMRC, including gains and taxable income
Explain how crypto tax reporting works and what’s required for your Self Assessment
Highlight potential risks or missed reporting obligations before HMRC flags them
Assess whether previous years need correcting and explain voluntary disclosure options
Outline how we calculate gains and income accurately, including HMRC cost basis rules
Select a Date & Time
When VAT Applies to Crypto
Navigating the nuances between exempt and taxable supplies is critical to avoid HMRC penalties.
VAT Registration
We advise whether VAT registration is required or beneficial for your crypto business. We handle the registration process and set up your systems for compliance.
Taxable Supplies
Services you provide may be subject to VAT even if paid in crypto. Consultancy, development work, training and other services follow normal VAT rules regardless of payment method. The value for VAT purposes is the sterling equivalent at the time of supply.
Crypto Mining and Staking
Mining and staking rewards are outside the scope of VAT if there is no identifiable customer. However, if you provide mining services to a specific customer for payment, VAT may apply. The position depends on your specific arrangements.
How Crypto Tax Reporting Works
A simple, four-step process to get your taxes sorted.
Connect Data
Our software pulls transaction data directly from your exchanges and wallets securely.
Calculations
We reconcile disposals and apply HMRC matching rules to determine your exact gain/loss.
Review
A specialist accountant reviews the data for optimizations, reliefs, and accuracy.
Submission
We prepare and submit your Self Assessment tax return to HMRC on your behalf.
Our Promise To You
We specialise in cryptocurrency. This is not a side service added to traditional accounting. Our team understands blockchain technology, uses dedicated crypto software and stays current with HMRC guidance. You get accurate figures, defensible positions and confidence in your compliance.
RESPONSIVE SUPPORT
Real accountants, real answers. We don’t use impersonal ticketing systems, giving you direct access to the support you need.
Dedicated Accountant
You won’t be passed around a call centre. You get a dedicated accountant who understands your specific situation.
EXPERT TAX EFFICIENCY
We use our expertise to ensure your accounts are structured efficiently, checking for the allowances and reliefs relevant to you.
Clear advice in plain English
No jargon. Just practical, direct guidance so you always understand your financial position.
Frequently Asked Questions
Do I charge VAT on crypto sales?
No. The exchange of cryptocurrency for fiat currency is exempt from VAT. You do not add VAT to crypto sales.
What if I accept crypto for services?
The service itself determines VAT treatment. If your service is normally subject to VAT, accepting crypto payment does not change that. You would charge VAT based on the sterling value at the time of supply.
Can I reclaim VAT on crypto purchases?
If you are VAT registered and making taxable supplies, you can reclaim input VAT on business expenses in the normal way. Crypto holding for investment does not generate input tax recovery.
How much does a Crypto Accountant Cost?
Our fees depend on the complexity of your crypto activity. We provide fixed fee quotes upfront so you know exactly what to expect. No hourly rates that escalate unexpectedly.