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This guide aims to be a valuable resource for those that have traded crypto on Bitvavo and are wondering if and how one should pay taxes on it. You should find the contents of this article helpful when calculating your Bitvavo taxes. However, make sure you complement this guide with the crypto tax guide relevant to your country.
Introduction to Bitvavo
Bitvavo was founded in 2018 out of Amsterdam in order to bridge the gap between traditional currencies and digital assets. Bitvavo has grown rapidly into one of the largest and most well known European crypto exchanges with over a million users. Bitvavo is a safe choice for people who want an easy-to-use solution for buying and selling cryptocurrencies. With low transaction fees, never more than 0.25%, a rapidly growing selection of cryptocurrencies is growing rapidly. Bitvavo is a reliable crypto exchange as they are supervised by the Dutch Central Bank and must adhere to strict regulations. Bitvavo’s main goals are to be transparent about (trading) costs and markets, ensure that the platform and products are as accessible as possible to everyone, and believe in the digital economy and the future of digital currencies.
Bitvavo has many advantages, which make it incredibly user friendly. As already said, You never have to pay more than 0.25% in fees, the company is reliably backed by the Dutch central bank, it is a user-friendly online trader that offers over 150+ different cryptocurrencies, and wallets are insured up to $255 million.
Do I need to pay taxes when using Bitvavo?
In most countries multiple transaction types on Bitvavo will be seen as a taxable event by the local tax authority. Particularly trades and staking rewards. If you are unsure which transaction types affect you, please see Divly’s country-specific crypto tax guides.
If you are from the Netherlands you won’t need to worry about paying taxes on each transaction. Instead you will be required to pay wealth tax based on the amount of crypto you held at the end of the year amongst all of your exchanges and wallets.
How to export your Bitvavo transaction history
Bitvavo allows clients to export their transaction history by either downloading a CSV file or by programmatically exporting it via their API. This is a necessary step whether you are doing your taxes in excel, using a tax lawyer, or using a tax calculator like Divly. Below are instructions on how to accomplish both.
| Transaction type | File Import | Automatic Import |
|---|---|---|
| Withdrawals | ||
| Deposits | ||
| Trades | ||
| Trading Fees | ||
| Staking Rewards | ||
| Rewards |
Automatic import
You can import your Bitvavo transactions automatically using their API.
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Sign in to Bitvavo.
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Navigate to the Account drop down menu.
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Select the API tab.
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Click on the Add new API key. Name the API Key Divly and turn on the View Information slider. Click confirm to generate your API key and secret.
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You will receive an email to verify the API key. Make sure you complete this step.
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Copy and paste your API keys into Divly.
File import
You can import Bitvavo transactions into Divly by downloading and importing a CSV file. Make sure to download the CSV file every time you want to include the latest transactions.
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Sign in to Bitvavo.
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Navigate to the Account drop down menu.
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Select the Transaction History tab.
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Click on Export History On the right side above the list of your transactions
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Make sure to select Full History (CSV) and click Export History to download the file
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Drag and drop the CSV file to where it says Upload CSV. Divly will import the transactions.
Step 2: Calculating Your Bitvavo taxes
Navigating through tax calculations can be approached in several ways, each varying in cost, effort, and expertise required. Your selection largely hinges on your financial willingness and grasp of the tax regulations specific to your jurisdiction.
Method 1: DIY with Spreadsheet Software Use tools like Microsoft Excel to manually perform your tax calculations. This approach is cost-effective (essentially free), yet demands a considerable investment of time and a solid understanding of the intricacies of tax laws.
Method 2: Automated Tax Software Opt for specialized tax platforms, such as Divly, which streamline the entire process by automating the calculations. These platforms allow for easy importation of your transaction data, significantly reducing the time and effort involved.
Method 3: Professional Tax Preparation Services Enlist the services of a tax professional or a lawyer who specializes in tax preparation. This is undeniably the priciest route. This option is particularly appealing if your tax situation is complex or if you simply prefer the reassurance of having an expert handle your financial obligations.
After deciding on the method best suited to your needs and preferences, you'll need to account for the various transaction types available on Bitvavo.
Withdrawals
Withdrawals refer to crypto transactions sent out of a Bitvavo account. When importing from Bitvavo, withdrawals can also represent manual adjustments subtracted by Bitvavo.
Deposits
Deposits refer to crypto transactions sent to your Bitvavo account. When importing from Bitvavo, deposits can also represent manual adjustments added by Bitvavo.
Trades
Crypto trades refer to crypto being purchased for fiat, crypto being sold for fiat, or trading one cryptocurrency for another. This also includes swaps made in your Bitvavo account.
Trading Fees
Fees are not included in the export and won't be handled in the tax calculations.
Staking Rewards
Staking rewards are an incentive that blockchains provide to participants. Divly imports both staking rewards and distribution rewards from Bitvavo and classifies them as staking rewards.
Rewards
A reward from referring a friend, sharing a post, or any other required action such as receiving crypto can incur Income Tax in some countries. For Bitvavo, Divly classifies affiliate rewards and rebates as Rewards.
Step 3: Declare your crypto taxes
Each country is unique, therefore Divly provides a localized tax form with instructions how to declare your cryptocurrency taxes.
If you are manually completing your own taxes, then you may find our localized crypto tax guides handy so that you can accurately complete your own declaration.
Common issues when calculating your Bitvavo taxes
There are no common issues that we have seen amongst our user base in regards to declaring your Bitvavo taxes.
If you have any issues with calculating your Bitvavo taxes, feel free to contact our support team which is available via the online chat on the bottom right hand corner of our website. Good luck!
Any tax-related information provided by us is not tax advice, financial advice, accounting advice, or legal advice and cannot be used by you or any other party for the purpose of avoiding tax penalties. You should seek the advice of a tax professional regarding your particular circumstances. We make no claims, promises, or warranties about the accuracy of the information provided herein. Everything included herein is our opinion and not a statement of fact. This article may contain affiliate links.