Bitcoin Accounting & Taxes for Bitcoin Payments with Coinsnap

Posted on September 20, 2025 by Sebastian Paulke

For many online merchants, legal and tax considerations still present a hurdle when accepting Bitcoin payments–Bitcoin accounting seems complicated! One of the main reasons is the tax treatment of Bitcoin and the question of how Bitcoin payments should be recorded in accounting systems.

In this article, we explain:

How to record Bitcoin payments in your online store’s accounting
How to prove receipt of Bitcoin in your Bitcoin wallet
How to document all Bitcoin transactions using Coinsnap
How to download all Bitcoin transactions as a CSV file for further processing in other systems
How to further process Bitcoin transactions using CoinTracking

Is Bitcoin payment receipt provable for tax purposes?

Yes. Bitcoin payments are provable through wallet transaction records, blockchain data, and payment processor dashboards such as Coinsnap, which document the transaction amount, exchange rate, and order reference.

How Bitcoin Payments Are Booked in an Online Store

Before focusing on Bitcoin-specific accounting details, it is important to understand how orders and payments are processed in an online store in general. From an accounting perspective, Bitcoin payments follow the same workflow as traditional payment methods: an order is placed, an invoice is issued in fiat currency, and the payment is recorded against that invoice. The differences arise only at the payment settlement stage—not in the order or invoicing process itself

How do merchants account for Bitcoin payments?

Merchants account for Bitcoin payments by issuing invoices in fiat currency, recording the Bitcoin amount received at the exchange rate at the time of payment, and documenting the transaction in their accounting system or tax software.

Order Creation and Invoice Issuance

A customer orders a product in your online store for €100, for example, and the store system generates an invoice for this order.

The invoice is issued in the local currency of your country (in Europe, euros), includes VAT, and contains all legally required tax and invoice information.

Payment Processing: Bitcoin vs. Traditional Methods

The customer is prompted to pay the invoice.
It makes no difference whether the payment is made by credit card, PayPal, or Bitcoin.

Once payment has been successfully completed, the store system marks the invoice as paid and the merchant can proceed with shipping the ordered goods.

How Bitcoin Payments Are Credited

If the customer pays by credit card or PayPal, the merchant receives a transaction statement from the payment service provider and a corresponding credit to their bank account.

With Bitcoin, merchants can choose whether the funds are credited to a bank account or retained as Bitcoin in their own wallet.

Bitcoin Settlement to a Bank Account

If you prefer to have your Bitcoin turnover paid out to your bank account, you can activate bank settlement via your selected Coinsnap payout partner.

Incoming Bitcoin payments are automatically forwarded to Bringin, Strike, or DFX and sold there. The fiat equivalent is transferred directly to your bank account, ensuring that each invoice can be clearly assigned to and documented against the corresponding incoming payment.

Bitcoin Settlement to Your Own Lightning Wallet

Most merchants who accept Bitcoin payments prefer to retain the Bitcoin they receive, either privately or within the company.

It is strongly recommended to use separate wallets in order to clearly distinguish business Bitcoin from private holdings.

Coinsnap requires a Bitcoin wallet with a Lightning address to which payments are credited. Supported wallets include Strike, Wallet of Satoshi, Blink, Breez, and others.

The Strike wallet, for example, allows the use of both a private wallet and a dedicated business wallet. If you already use a Lightning wallet privately, it is advisable to use a separate wallet for your company.

Bitcoin Settlement to Your Own Bitcoin Wallet

A Bitcoin Lightning wallet is suitable for receiving Lightning payments, but it is not intended for receiving on-chain payments or for long-term Bitcoin storage. For long-term storage, Bitcoin should be transferred to a secure hardware wallet such as BitBox02, Ledger, or Trezor.

Hardware wallets allow the creation of multiple accounts, enabling a clean separation between private and company Bitcoin holdings. Bitcoin balances can then be transferred from the Lightning wallet to the hardware wallet.

To deposit your Bitcoin directly into your hardware or Bitcoin on-chain wallet, simply enter your xPub key or your personal Bitcoin address in the Coinsnap settings.

The Bitcoin addresses of hardware wallets are publicly verifiable, allowing transparent documentation of how much Bitcoin the company holds at any time.

Documentation of the “Bitcoin Purchase”

When a customer pays with Bitcoin, the transaction is economically equivalent to the company purchasing Bitcoin from the customer.

The Bitcoin amount received and the applicable exchange rate at the time of payment must therefore be documented.

For example, if a customer purchases a product for €100 and the Bitcoin price at that time is €100,000, the company receives 0.001 BTC (100,000 satoshis).

Coinsnap displays this information in detail for each individual transaction in the Coinsnap dashboard, including the Bitcoin amount, exchange rate, customer reference, and the corresponding order in the online store.

All transaction data can be downloaded as a CSV file and transferred to other systems.

The data can also be imported into CoinTracking, where it can be evaluated for accounting purposes or provided to a tax advisor. Coinsnap will soon offer an automated data-export feature that forwards all relevant transaction data directly to tax software solutions such as CoinTracking and 3Folio, enabling seamless and compliant tax reporting without manual effort.

Can Bitcoin transactions be exported for accounting software?

Yes. Coinsnap allows merchants to export all Bitcoin transactions as CSV files, which can be imported into accounting tools or tax software such as CoinTracking.

Buying Bitcoin Privately from Your Company

Whether the Bitcoin received remains within the company or is sold immediately—either to a Bitcoin broker or to the business owner privately—depends on individual preferences and circumstances.

In many cases, Bitcoin sales volumes will initially be low, making immediate liquidation unnecessary for covering operating expenses.

However, there may be reasons not to hold Bitcoin on the company balance sheet. For example, a co-shareholder may not wish to hold Bitcoin as an asset due to its volatility, while still appreciating its advantages as a payment method.

Instead of purchasing Bitcoin privately on an exchange, it is also possible to buy Bitcoin directly from your own company. The timing of this transaction and the applicable Bitcoin price can be relevant.

For example, you may conclude an agreement under which you buy the received Bitcoin from the company immediately at the current exchange rate.

Payment for the Bitcoin purchased from the company can be made via bank transfer from your private account to the business account, or alternatively recorded as a private withdrawal.

In all such cases, consultation with a tax advisor is strongly recommended, as the correct treatment depends on the individual legal and tax situation.

Is accepting Bitcoin treated as a Bitcoin purchase?

From an accounting perspective, accepting Bitcoin is equivalent to acquiring Bitcoin at the exchange rate valid at the time of payment.

Summary: Bitcoin Accounting with Coinsnap

Uncertainty around tax and accounting treatment continues to prevent many online merchants from accepting Bitcoin payments.

As with any payment method, accounting requires clear documentation of which invoices have been paid, where the payment was received, and the resulting balance—whether in a bank account or, in the case of Bitcoin, in a wallet.

With Bitcoin payment processing via Coinsnap, these documentation and verification requirements can be fully met. Each Bitcoin payment is recorded at the applicable exchange rate at the time of the transaction, and every wallet transaction is documented individually, similar to a bank statement.

All transaction data can be exported, imported into other systems, and used for accounting and tax purposes. Like an account balance, Bitcoin holdings are precisely recorded and can be independently verified by anyone via the blockchain.

FAQ

Does Coinsnap hold merchant funds?

No. Coinsnap never holds Bitcoin or fiat funds. Payments are credited directly to the merchant’s wallet or settled via an external payout partner.

Can Bitcoin payments be settled in euros?

Yes. Merchants can choose automatic settlement to a bank account via Coinsnap payout partners such as Strike, Bringin, or DFX.

Are Lightning payments suitable for long-term Bitcoin storage?

No. Lightning wallets are intended for payment reception. Long-term storage should be done using a secure hardware wallet.

Is Bitcoin accounting different from card payments?

The invoicing process is identical. The difference lies in documenting the Bitcoin amount and exchange rate instead of a bank transaction.

Coinsnap Affiliate Program: Refer Merchants – Earn Bitcoin!

Posted on November 28, 2023 by Sebastian Paulke

Coinsnap Affiliate Program: Refer Merchants – Earn Bitcoin!

Help more online stores accept Bitcoin and Lightning as a means of payment and earn a few sats in the process.

Are you an online merchant who already actively uses Coinsnap and can pass on your experience to other eCommerce merchants?

Or are you a Bitcoin consultant, web designer or an eCommerce agency that supports online stores with the integration of Bitcoin and Lightning as a payment method?

Help merchants accept Bitcoin

Earn Bitcoin with the Coinsnap affiliate program by helping merchants accept Bitcoin and Lightning payments.

Coinsnap enables online stores to accept Bitcoin and Lightning payments quickly and easily.

No lengthy application and registration process is necessary. As a merchant, all you need is your own Lightning wallet with a Lightning address to which incoming Bitcoin payments are credited.

For fast technical integration, payment modules are provided with which the most common store systems can be connected to Coinsnap.

This simplicity makes it easy to support online merchants in accepting Bitcoin and Lightning payments.

Discount for the new merchant, commission for you

If you help a new merchant to accept Bitcoin and Lightning payments, the new merchant will receive a 0.25% discount on the Coinsnap fee based on your recommendation.

Since you have recommended Coinsnap, you also benefit and receive a commission of 0.25% on the turnover of the new Coinsnap merchant.

This way, both the new merchant and you benefit from using the Coinsnap discount code.

Recruit merchants and earn Bitcoin.

Earn 0.25% commission and the new merchant saves 0.25% in fees

Who can participate?

Whether an existing Coinsnap merchant or implementation partner, anyone can join the Coinsnap Affiliate Program and earn a few sats.

All you need is a Coinsnap account and a Lightning Wallet to which the commissions are paid out.

In the Coinsnap backend, you will automatically receive an individual code that can be used as a discount code for new merchants.

This means that every Coinsnap merchant is automatically able to recruit new merchants and earn commissions. Bitcoin consultants, web and eCommerce agencies are also welcome to participate in the Coinsnap partner program.

Simply create a Coinsnap account, enter your Lightning address and off you go.

How can I promote my discount code?

You will receive your individual discount code in the form of a link in the Coinsnap backend.

You can include this discount code link on your own website and when a new merchant comes to the Coinsnap website via this link, the discount code is automatically transmitted during registration and the new merchant is assigned to you as a link provider.

You can also include the link in combination with the Coinsnap logo on your website. You can download the Coinsnap logo from the Coinsnap Media page and embed it on your website.

The discount code can also be printed on flyers and brochures or mentioned in YouTube videos and podcasts. The code is then entered manually during registration and the assignment is made.

If you carry out the Coinsnap integration for an online merchant, you can enter the code yourself when creating the merchant account.

More Coinsnap banners for download

Integrating Bitcoin and Lightning payments in online stores

As a web or e-commerce agency, you can expand your services and process Bitcoin and Lightning payments for your customers in their online store.

As an implementation partner, you integrate the payment module for your customer or realize an individual API connection. You are the first point of contact for your customer and Coinsnap supports you with the implementation.

On request, Coinsnap can also take over the integration into your customer’s online store.

Any Questions?

How and where do I receive my commission?

The commission is paid out as Lightning to the registered Lightning address as soon as the minimum amount of 1,000 Sats has been reached. You will also receive a monthly commission statement.

Can I use my own code to reduce my fees?

It is not possible to use your own code to get a discount on your own fees.

Can I add a code at a later date to reduce the fees?

Once a new merchant account has been created, a code can no longer be stored. Likewise, once a code has been stored, it can no longer be changed.

Can I get an individual code?

For YouTubers and podcasters, we offer the option of creating an individual code that is linked to the name of the YouTube channel or podcast. If you run a YouTube channel or podcast and would like to draw attention to Coinsnap, simply get in touch with Coinsnap and we will create a code for you.

Where can I find more information about the Coinsnap Affiliate program?

You can find more information about the Coinsnap partner program here: Coinsnap Affiliate Program.

Where can I get Coinsnap logos and banners for my website?

You can embed the Coinsnap logo on your website and add your own referrer code as a link. You can download the Coinsnap logo and advertising banner from the Coinsnap Media page.

How can I get started?

Start helping online merchants accept Bitcoin and Lightning payments today.
Open a Coinsnap account, deposit your Lightning address and start helping merchants accept Bitcoin and Lightning payments.

Create a Coinsnap account now!

Coinsnap’s free Shopify integration service

Posted on November 6, 2023 by Sebastian Paulke

Coinsnap’s free Shopify integration service

With the Shopify Integration Service, we integrate Bitcoin and Lightning payments into your Shopify store free of charge.

To be able to accept Bitcoin and Lightning payments in your Shopify store, the Shopify store must be connected to Coinsnap.

You have 2 options to establish this connection:

1. Create the connection yourself.

We’ll show you how to do this step by step in the Coinsnap for Shopify user guide.

2. Request the free Shopify installation service from Coinsnap

If you don’t want to go to the trouble of connecting Coinsnap for Shopify with your Shopify store, we’ll be happy to do it for you – free of charge and reliably.

To take advantage of this free Shopify integration service, just complete these two small tasks:

Create a new admin-user as an administrator in Shopify
instruct us to install Coinsnap for Shopify in your Shopify store for free

Create shopify@coinsnap.io as administrator of your Shopify store

To install Coinsnap Bitcoin-Lightning payment in your Shopify store, we need access to the backend of your store.

To do this, please set up a new user shopify@coinsnap.io. (After successfully setting up Coinsnap in your Shopify store, the employee is no longer needed and should be deleted).

Creating shopify@coinsnap.io as the administrator of your Shopify store works like this:

Click on Users in the left sidebar of your Shopify backend. Then enter our email address shopify@coinsnap.io at the top.

Now you need to give the new Coinsnap user admin rights so that we can make the necessary settings in your system. To do this, click on (+) Assign in the second field.

In the pop-up window that now appears, please click on Administrator.

Then you will see this screen – shopify@coinsnap.io is now set up as an administrator and will receive an email that our technicians can use to log into your Shopify to link Coinsnap for Shopify to your store! (As soon as we log in, the yellow Pending field will change to green Active).

Order the free Shopify Integration Service

In your Coinsnap dashboard, go to Finances → Settings → Shopify and click “Request an integration service” [1].

Since you already created the admin user with the email address shopify@coinsnap.io in your Shopify store [2], you can now confirm that the admin user for Coinsnap has been created [3] and formally request the free integration service [4].

We will take care of everything else – and inform you immediately when Coinsnap for Shopify is installed and you can delete the administrator shopify@coinsnap.io from your Shopify system!