How to record cryptocurrency in accounting?

Cryptocurrency is recorded as an asset — depending on purpose: inventory (for trading), financial investments (long-term holding) or intangible assets. Valued at cost or fair value.

Can an Estonian company (OU) trade cryptocurrency?

Yes, an OU can buy and sell cryptocurrency as part of business operations. All transactions must be recorded. Profit is taxed at corporate income tax rate (22/78) only when dividends are distributed.

What software to use for crypto accounting?

Koinly and CoinLedger import transactions automatically and generate tax reports. For standard bookkeeping, Merit Aktiva works well — crypto transactions are entered manually per RTJ requirements.

How does a sole proprietor (FIE) declare crypto income?

FIE declares crypto income as business income if related to the business activity. As a private person, income is declared under "Other income". Tax is 22% in both cases.

Crypto Accounting — Business Bookkeeping in Estonia

How to record cryptocurrency in business accounting in Estonia. Guide for companies (OU) and sole proprietors (FIE), balance sheet and taxation 2026.

Crypto accounting has become essential as more Estonian businesses deal with cryptocurrency — directly (buying, selling, accepting payments) or indirectly (employee salaries, investments).

Cryptocurrency recording depends on the purpose of use: crypto held for trading is recorded as inventory, long-term investments as financial investments. Estonia has no separate accounting standard for crypto, so existing RTJ standards apply.

Corporate income tax in Estonia applies only upon profit distribution (dividend payments). This means crypto held in an OU is not taxed until dividends are paid.

Crypto Accounting for Companies (OU)

Balance Sheet Treatment

For trading: Inventory (current assets) — if the company regularly buys and sells crypto.

Long-term holding: Financial investments (non-current assets) — valued at cost minus impairment.

Payment acceptance: Cash equivalents — if crypto is converted to euros immediately.

Corporate Taxation

Corporate income tax (22/78 = ~28.2%) — only on dividend distribution

Buying, selling and holding crypto in OU — tax-free until profit distribution

VAT: crypto exchange is VAT-exempt (EU court ruling)

Crypto Accounting for Sole Proprietors (FIE)

A sole proprietor (FIE) can record crypto transactions as business income if related to their business activity:

Income declared as business income (Form E)
Exchange fees, software and other costs are deductible
Social tax 33% and income tax 22% apply

If crypto transactions are not related to FIE business activity, income is declared as a private person under "Other income" (22% income tax only, no social tax).

Crypto Accounting Tools

Koinly

Automatic transaction import from all exchanges. Generates tax reports. Supports FIFO method and Estonian tax rules.

Try Koinly →

CoinLedger

Simple tax accounting software. Imports transactions and calculates tax. Good for smaller portfolios.

Try CoinLedger →

Merit Aktiva

Estonian accounting software. Crypto transactions entered manually per RTJ requirements. Suitable for OU and FIE.

Automatic Crypto Accounting

Koinly imports transactions from all exchanges and generates accounting and tax reports. 20% discount with our link.

Start with Koinly

Affiliate link. Commission does not increase your costs.