How to Use a Personal Crypto Wallet for Business Expenses (Legally Avoiding VAT)
Using a personal crypto wallet for business expenses might sound complicated, but it's actually straightforward—and entirely legal. This process is similar to paying for business costs with a personal credit card and getting reimbursed by your company. Here's how it works, simply and clearly:
Simple 3-Step Process
1
Make the Purchase
Use your personal crypto wallet to settle invoices from Alehtium, just like you would with a personal credit card.
2
Document the Expense
Keep out invoice. This shows clearly what was bought, when, and the amount spent in GBP or EUR.
3
Claim Reimbursement
Submit the receipt or transaction confirmation to your business as an expense claim. The business reimburses you directly in GBP or EUR, treating it as a straightforward reimbursement of expenses.
How VAT is Legally Avoided:
- Since the business reimburses you directly, it's effectively a transaction between the business and the supplier (our marketplace).
- Your business can correctly record this as a B2B purchase, which means it can reclaim any VAT paid, or benefit from VAT-free purchases depending on the transaction specifics.
- You, as the individual, don't incur VAT costs personally, because you're fully reimbursed.
Why is this Legal?
- This method is exactly the same as widely used expense practices, like paying with your personal credit card and then being reimbursed by your company.
- HMRC and EU tax authorities recognise this standard practice, making the crypto wallet scenario fully compliant and routine.
Business Benefits
VAT Savings
Legitimate VAT reclaim or avoidance on business purchases, improving your bottom line without complex accounting maneuvers.
Familiar Process
Functions just like claiming regular business expenses—no new systems or complicated procedures to learn or implement.
Crypto Integration
Seamlessly incorporate cryptocurrency into your business operations without regulatory complexity or accounting headaches.
Interested to get set up and start paying or accepting crypto today?