We architect and deploy production-grade smart contracts that power your core business logic. Our development process ensures security-first design, gas efficiency, and comprehensive audit readiness from day one.
NFT Royalty & Sales Tax Reporting Service
Custom Smart Contract Development
Secure, gas-optimized smart contracts built to your exact specifications.
- Protocols & Standards:
ERC-20,ERC-721,ERC-1155,ERC-4626, and custom implementations. - Key Deliverables: Full test suites, deployment scripts, and technical documentation.
- Typical Timeline: MVP in 2-4 weeks, full production deployment in 6-8 weeks.
We don't just write code; we build the unbreakable foundation for your on-chain product. Our contracts are designed for the long term, with upgradeability patterns and modular architecture.
Core Capabilities of Our Tax Reporting Engine
Our engine automates the complex tax calculations for NFT royalties and secondary sales, delivering accurate, audit-ready reports that ensure compliance across jurisdictions.
Multi-Chain Royalty Aggregation
Automatically track and aggregate royalty payments across Ethereum, Solana, Polygon, and Base. We reconcile on-chain data to provide a single source of truth for creator payouts and tax obligations.
Jurisdiction-Specific Tax Logic
Pre-configured tax rules for the US (IRS Form 8949), EU (VAT MOSS), UK, and other major markets. Our engine handles complex scenarios like creator residency, marketplace location, and digital goods classification.
Automated Cost Basis & Gain/Loss
Calculate accurate cost basis for NFT mints, airdrops, and purchases. Automatically determine capital gains/losses on secondary sales using FIFO, LIFO, or specific identification methods as required.
Enterprise-Grade Data Security
SOC 2 Type II compliant infrastructure with end-to-end encryption. All financial data is processed in secure, isolated environments with role-based access controls for your team.
Seamless Platform Integration
Plug-and-play APIs and webhooks to integrate directly with your marketplace, wallet, or creator dashboard. Sync user wallets, transaction history, and generate reports without engineering overhead.
Audit-Ready Reporting Exports
Generate detailed tax reports (CSV, PDF) formatted for accountants and tax authorities. Maintain a permanent, immutable audit trail of all calculations and data sources on-chain.
Business Outcomes: Scale with Compliance Confidence
Our NFT royalty and sales tax reporting service delivers concrete infrastructure, not just advice. We provide the audited systems and automated workflows that ensure your marketplace operates compliantly at any scale.
Automated Tax Jurisdiction Mapping
We deploy a real-time engine that maps every transaction to the correct 10,000+ global tax jurisdictions, eliminating manual research and classification errors.
Audited Royalty Calculation Engine
Get a production-ready, gas-optimized smart contract module for enforcing creator royalties with sub-cent precision, built on OpenZeppelin standards.
Regulatory Report Generation
We generate ready-to-file 1099-K, VAT, GST, and other jurisdictional reports in required formats (CSV, XML), pre-validated for accuracy.
Secure PII & Transaction Data Handling
Your user and transaction data is processed in our SOC 2 Type II compliant environment, ensuring data privacy and security for regulatory purposes.
Scalable API & Webhook Integration
Integrate our reporting and calculation services via REST APIs and real-time webhooks, designed for 99.9% uptime to match your marketplace volume.
Compliance Audit Trail
Receive an immutable, timestamped ledger of all tax and royalty calculations for your annual financial audits and regulatory reviews.
Build vs. Buy: The True Cost of NFT Tax Compliance
Comparing the long-term financial and operational burden of developing a custom tax engine versus implementing Chainscore's managed service.
| Compliance Factor | Build In-House | Buy with Chainscore |
|---|---|---|
Initial Development Time | 6-9 months | 4-6 weeks |
Upfront Engineering Cost | $250K - $500K+ | $0 |
Annual Maintenance & Updates | $150K - $300K | Included |
Regulatory Monitoring | Your team's responsibility | Included (Global) |
Audit & Security Review | $50K - $100K (one-time) | Included (Annual) |
Time to First Report | 9+ months | < 48 hours |
Covered Tax Jurisdictions | Requires legal research | 100+ (US, EU, UK, APAC) |
Ongoing Support Burden | Full-time dev + legal team | Dedicated CSM & Slack channel |
Total 3-Year Cost (Est.) | $700K - $1.2M+ | $75K - $200K |
Risk of Non-Compliance | High (You are liable) | Low (We assume liability) |
Our Implementation Process: Integration in Weeks, Not Months
Our structured, milestone-driven process is designed for technical teams. We deliver a production-ready NFT tax reporting system with minimal disruption to your existing operations.
Week 1: Discovery & Architecture
We analyze your NFT collections, marketplace integrations, and data sources. We deliver a technical specification and integration architecture for your review.
Week 2-3: Core Integration & Data Pipeline
Our engineers implement smart contract listeners, index historical sales data, and establish secure connections to your accounting/ERP systems (e.g., QuickBooks, NetSuite).
Week 4: Royalty & Tax Logic Implementation
We configure jurisdiction-specific tax rules (VAT, GST, sales tax) and implement automated royalty calculation and disbursement logic as per your smart contracts.
Week 5: Reporting Dashboard & API Delivery
You receive access to the admin dashboard for transaction review and export. We also deliver a secure REST API for programmatic access to all tax and sales data.
Week 6: Security Audit & Go-Live
Final penetration testing and code review by our security team. We handle the production deployment and provide your team with comprehensive operational documentation.
Ongoing: Compliance Monitoring & Updates
We proactively monitor for regulatory changes (e.g., OECD, IRS guidelines) and update tax logic accordingly. Includes quarterly compliance reviews and reporting.
Frequently Asked Questions on NFT Tax Reporting
Get clear answers on how our automated NFT tax reporting service integrates with your platform, handles compliance, and scales with your business.
We provide a secure, read-only API that connects to your smart contracts and backend systems. Our integration typically takes 1-2 weeks and requires no changes to your core transaction logic. We handle indexing on-chain sales, royalty distributions, and off-chain marketplace data to create a unified tax ledger.
Get In Touch
today.
Our experts will offer a free quote and a 30min call to discuss your project.