Crypto Payments Tax and Accounting: A Plain Guide for Small Retailers

The checkout part of crypto is easy. The part that catches new merchants is what happens afterward: how to record the sale, what to tell your accountant and what the IRS expects when a customer pays you in digital assets instead of dollars.

This guide walks through the rules for US retailers, what Canadian retailers should read, and a weekly bookkeeping routine that keeps tax season calm. It summarizes official guidance as of October 2026 and is not tax advice. Bring it to your accountant, ideally before your first crypto sale.

Key takeaways

• The IRS treats digital assets, including bitcoin and stablecoins, as property, not currency.
• When your business receives digital assets for goods, you record the fair market value in US dollars at the time you receive them, and it is ordinary business income.
• Holding crypto after a sale can create a separate gain or loss when you later sell or convert it. Converting to dollars quickly keeps this small.
• Brokers began reporting digital asset sales on Form 1099-DA for transactions from January 1, 2025, with cost basis reporting for certain transactions from January 1, 2026.
• Canadian retailers should follow the Canada Revenue Agency's crypto-asset guide, which covers income, valuation, GST/HST and records.

How does the IRS treat crypto a store receives?

The IRS says that for federal tax purposes, digital assets are considered property, not currency. Its list of digital assets includes convertible virtual currencies such as bitcoin, stablecoins and NFTs.

For a business, three rules matter most:

1. It is ordinary income. The IRS says income from receiving digital assets in a business context is taxed as ordinary income or loss. Sales to customers are reported on Schedule C for sole proprietors.
2. Record the dollar value at receipt. You must keep records of the fair market value, in US dollars, of digital assets received as payment in the ordinary course of business.
3. Answer the digital asset question. Federal returns ask whether you received digital assets as payment for property or services during the year. If you accepted crypto, the answer is yes.

What about the price changing after the sale?

Because crypto is property, the IRS treats a later sale, exchange or other disposal as its own taxable event. If you receive bitcoin worth $100 and convert it to dollars when it is worth $90, your accountant will need both numbers. This is one reason many retailers accept stablecoins or use providers that settle in dollars: the value at receipt and the value at conversion are usually very close.

What is Form 1099-DA?

Form 1099-DA is how brokers report digital asset transactions to the IRS. According to the IRS:

• Brokers must report gross proceeds for transactions on or after January 1, 2025.
• Brokers must report cost basis for certain transactions on or after January 1, 2026.
• For certain stablecoin sales, brokers may report on an aggregate basis above set thresholds.

If you convert crypto to dollars through a platform that counts as a broker, you may receive a 1099-DA. Make sure your own records match it.

What about sales tax?

Price and ring up the sale in dollars as you always do, and calculate sales tax on that dollar price. The customer's payment method changes how they pay, not what the sale is. Ask your state revenue department if you are unsure how it treats sales paid in digital assets.

Do I need special accounting for crypto on my books?

If you only prepare tax returns, the IRS rules above are the main concern. If you also prepare financial statements under US GAAP, for example for a bank loan, there is an accounting standard to know.

FASB's ASU 2023-08 requires covered crypto assets to be measured at fair value, with changes recognized in net income each reporting period. According to Forvis Mazars, it applies to all entities, including private companies, for fiscal years beginning after December 15, 2024. Whether a given stablecoin falls within its scope depends on criteria such as whether the token gives enforceable rights to underlying assets, which requires judgment. Ask your accountant how it applies to any crypto you hold at period end.

What should Canadian retailers do?

The Canada Revenue Agency has a dedicated guide for crypto-assets, last modified October 29, 2025. It has sections on reporting income from crypto-asset transactions, determining the value of crypto-assets, collecting and remitting GST/HST on crypto-asset transactions and keeping books and records. Read the business income, valuation and GST/HST sections before your first sale, and value each sale in Canadian dollars.

Also check provider availability. Coinbase says Coinbase Business is currently available only to businesses with a legal entity in the US or Singapore, with plans to expand.

A weekly crypto bookkeeping routine

Set aside 20 minutes every week:

1. Export the transaction history from your crypto payment provider. Coinbase notes that Commerce history did not transfer to Coinbase Business, which is a reminder to keep your own copies.
2. Match each crypto payment to the sale in your point of sale reports.
3. Record the US dollar value at the time of each payment.
4. Record every conversion to dollars and every transfer to your bank, with dates, amounts and fees.
5. Note refunds paid in crypto, with the dollar value at the time of refund.
6. Save everything in one folder for your accountant.

Coinbase lists QuickBooks and Xero integrations for Coinbase Business, which can help with steps 2 to 4.

A worked example

As an illustration, suppose a customer buys a $120 item, plus $9.60 sales tax, and pays $129.60 in USDC.

If the stablecoin held its value, there is little or no gain or loss on conversion. With a volatile coin held for weeks, there could be a meaningful one.

How ShelfPerks helps

• Clean sales records. ShelfPerks sales tax management calculates tax at the point of sale, shows tax on receipts and generates reports, so every crypto sale has the same dollar record as a card sale.
• Reports to match against. Real-time analytics give you sales by day and location to reconcile with your crypto provider's export.
• Expense tracking. Expense management helps you record processing and conversion fees.
• Crypto at checkout. ShelfPerks has integrated Coinbase Business. Once you connect your Coinbase Business account, crypto shows up at checkout like any other payment method. Coinbase lists QuickBooks and Xero integrations for exporting the crypto side.

Frequently asked questions

Do I pay tax on crypto my store receives?

Yes. The IRS treats digital assets as property, and digital assets received by a business as payment are ordinary income, recorded at their US dollar fair market value when received.

Is a stablecoin payment taxed differently from bitcoin?

The IRS lists stablecoins as digital assets, so the same property rules apply. In practice, a dollar stablecoin's value usually changes very little between receipt and conversion, so gains or losses tend to be small.

Will I get a 1099-DA?

Possibly. Brokers report gross proceeds of digital asset sales on Form 1099-DA for transactions from January 1, 2025, and cost basis for certain transactions from January 1, 2026. If you convert crypto through a broker, check that your records match.

Do I charge sales tax on sales paid with crypto?

Ring up and tax the sale in dollars as usual. Ask your state revenue department if you are unsure how it treats sales paid in digital assets.

What records should I keep for crypto payments?

Keep the date, the dollar value at receipt, the related sale, any fees, every conversion to dollars and every transfer to your bank. The IRS says taxpayers must keep records sufficient to support their returns.

Your next step

Send this guide to your accountant and ask one question: "How do you want me to record crypto sales and conversions?" To keep clean dollar records of every sale, try ShelfPerks with a 14-day free trial of Premium features, no credit card required, at grow.shelfperks.com.