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  1. #1
    FreeSpins is offline Public Member
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    Question How to invoice commission in BTC?

    Hello,

    I'm wondering how to issue an invoice for the commission received in BTC? Do you have any experience with this, e.g. in the UK, USA, EU? For example, in the UK, you probably can't invoice in currencies other than FIAT currencies.

    If anyone has any experience in this matter, I'd love to hear from you.

    Thanks in advance.

  2. #2
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    In many places, I believe you should simply just take the commission amount in FIAT as your base, then whatever price you get when exchanging the BTC, be it above or below that value, you claim the loss or gain as something other than earned income.

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  4. #3
    FreeSpins is offline Public Member
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    Quote Originally Posted by PROFRBcom View Post
    In many places, I believe you should simply just take the commission amount in FIAT as your base, then whatever price you get when exchanging the BTC, be it above or below that value, you claim the loss or gain as something other than earned income.

    Let's say, I have BTC commission due on 31.12.2020. So, I raise an invoice in FIAT (eg. EUR) with an exchange rate from any BTC exchange as of 31.12.2020. Amount due in BTC x exchange rate EUR/BTC.

    Next, I get payment in BTC on 16.01.2021. I'm checking how much it is in EUR and settle with the invoice and the difference will be a currency exchange loss/gain.

    Does it make sense?

  5. #4
    mgaming is offline Public Member
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    Quote Originally Posted by FreeSpins View Post
    Let's say, I have BTC commission due on 31.12.2020. So, I raise an invoice in FIAT (eg. EUR) with an exchange rate from any BTC exchange as of 31.12.2020. Amount due in BTC x exchange rate EUR/BTC.

    Next, I get payment in BTC on 16.01.2021. I'm checking how much it is in EUR and settle with the invoice and the difference will be a currency exchange loss/gain.

    Does it make sense?
    Yes, that's correct from the accounting perspective.

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    Syndicate is offline Public Member
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    It would be a good idea to take the exchange rate at time of settlement. This could be done by invoicing for the actual bitcoin, and offering the option to send a receipt for converted currency once settled!

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  9. #6
    FreeSpins is offline Public Member
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    Quote Originally Posted by Syndicate View Post
    It would be a good idea to take the exchange rate at time of settlement. This could be done by invoicing for the actual bitcoin, and offering the option to send a receipt for converted currency once settled!
    With this solution I would avoid currency exchange differences; I would have an invoice and payment in same value. I think it will work when aff program pay commission automatically, I mean without sending them an invoice before or Self-billing scenario.

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    Interesting read. I have never had to issue an invoice for BTC. The only invoices generated are for FIAT.
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    Having more and more players and casinos offering crypto as payments, this is very interesting topic. It has to be regulated.

  12. #9
    MMM
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    Quote Originally Posted by FreeSpins View Post
    With this solution I would avoid currency exchange differences; I would have an invoice and payment in same value. I think it will work when aff program pay commission automatically, I mean without sending them an invoice before or Self-billing scenario.
    I don't remember encountering any aff program asking for invoice to issue a payement in BTC.

    I do as you were suggested - to receipt the exact amount received in BTC at time of transaction. Otherwise you will always have differences and it will become a mess accounting wise.
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    What I do is find a local retailer that acts as a crypto ATM, and get cash from him. For the amount I received I issue the invoice. I do pay for the commission he pays my self and am not decalring it as expenses though, to avoid complications.

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    You calculate the exchange rate of the moment of invoicing. And you put the amount in local currency in your accountings. Of course there's a valuta risk with a volatile currency like BTC.

  15. #12
    FreeSpins is offline Public Member
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    I did some more reaseach in this topic and found that that the invoice should be issued in original currency the sale was made (in this scenario - cryptocurrency). Additionally, the invoice should include the average daily exchange rate from the exchange on which the payment is made.
    This applies to Irish/British tax system.

  16. #13
    MMM
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    Yes, that is very different between countries and also each CPA can say something a bit different.
    I do not go with daily average - as it can have big differences eventually. I just go with exact rate and that's it. So it matches by cent.
    Yes, I also list the amount in BTC.
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  17. #14
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    Btw, which e-wallet / crypto exchange do you use for business (company) payments? Any recommendations?

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    Quote Originally Posted by FreeSpins View Post
    Btw, which e-wallet / crypto exchange do you use for business (company) payments? Any recommendations?
    Coinbase and Bitcoin.com. No problems, so far.

    Before I had a wallet at Cubits, but those crooks ran away with the coins.

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  20. #16
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    Creating an invoice with a BTC address is one thing.

    Do regulated operators make BTC payments to players and or Affiliate payments?
    Wouldn't they prefer FIAT payments?

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    For me, all I need to do is provide my Bitcoin address to them, and at the same time, I send them an email telling them how much commission I have made for that period. For example, if I make $200 USD with a program, I will email them my Bitcoin address so that they can pay me that amount in blockchain. I also save screenshots just to make sure things are correct. When the time comes for them to pay me, I check to see the value of the Bitcoin payment when I received it and match it up to the commission that I earned for that specific month. This is what I do every month without any issues.

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    Maybe you can use the TXID.

  23. #19
    nvc
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    The problem by me with the affiliates that pay in BTC is that they don't want to provide company details and I am not able to generate invoice. How do you proceed at this situation? I asked 3 of the programs that I work with to share their companies and they didn't do anything. I need legal company with address and etc. to raise an invoice. I know that most of these crypto casinos are offshore companies but I guess they have some legal company operating the business. They are all licensed casinos in Curacao. Thanks

  24. #20
    MMM
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    yep. they won't provide you those.
    i just name by the program name.
    In my case the authorities are less interested in the other party, but just that the income is declared and taxed. but that's where i live.
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