Accounting for Crypto Companies in Estonia
Basics
Crypto exchange companies in Estonia are required to have a cryptocurrency license and follow the same reporting rules and requirements as any other financial institution in Estonia. According to the European Court of Justice ruling, cryptocurrencies are exempt from VAT.
Monthly accounting and tax declarations are needed if a crypto company has VAT registration or employees.
The basic accounting principle for a crypto exchange company with an Estonian FIU license is to record crypto assets as inventory, separate the company’s assets and customer balances, commissions earned from crypto exchange transactions are recorded as revenue and exchange-related fees are recorded as costs. The taxation of transactions with bitcoin and other cryptocurrencies in Estonia is regulated the same way as any other corporate activity – as long as the profit is not distributed, there is no corporate income tax applicable (to be changed from profit earned for the financial year 2025).
If the company conducts only crypto transactions for itself and has no crypto licenses, the accounting and legal requirements are lower, and it is treated like every other company.
If the Estonian crypto company has no VAT registration and no salary payments, monthly accounting is not needed. Every Estonian company must submit an annual report six months after the end of the financial year.
Information required for crypto company accounting in Estonia:
All sales and purchase invoices;
Receipts/invoices for travel costs;
Bank statements for full month (pdf+ xls);
Salaries (if any)– contracts, payment information;
Loan and any other relevant agreements;
Wallet transactions (in Excel) – date, currency, amount, value in EUR or USD, description of the transaction, commission fees, balance at the end of period (year, month)
Internal and external audit requirements
Following the recent AML regulation amendment, it is now mandatory for all crypto license applicants and current holders to appoint both an internal and external auditor for their company. These audits must be submitted to the Commercial Register annually. Our accounting team can help you find suitable auditors and further assist with your accounting needs. Please don't hesitate to contact us for more information about the auditing requirements for crypto companies in Estonia. Our team has the expertise to offer accounting services for Crypto Companies in Estonia.