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Free 30-min Web3 Consultation
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Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Services

NFT Royalty & Sales Tax Reporting Service

Automated tracking, calculation, and reporting of income tax on creator royalties and sales tax/VAT obligations for secondary market sales of tokenized real-world assets.
Chainscore © 2026
overview
CORE INFRASTRUCTURE

Custom Smart Contract Development

Secure, gas-optimized smart contracts built to your exact specifications.

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.

  • 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.

key-features-cards
AUTOMATED & COMPLIANT

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.

01

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.

10+
Blockchains Supported
Real-time
Data Sync
02

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.

50+
Tax Jurisdictions
IRS Compliant
Reporting
03

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.

100%
Calculation Accuracy
FIFO/LIFO
Method Support
04

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.

SOC 2
Compliant
AES-256
Encryption
05

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.

< 2 weeks
Integration Time
REST & GraphQL
API Options
06

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.

CSV/PDF
Export Formats
Immutable
Audit Trail
benefits
DELIVERABLES

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.

01

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.

10,000+
Jurisdictions Mapped
Real-time
Classification
02

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.

Sub-cent
Precision
Gas-optimized
Architecture
03

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.

IRS 1099-K
Compliant
EU VAT
Compliant
04

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.

SOC 2
Type II Certified
End-to-end
Encryption
05

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.

99.9%
Uptime SLA
< 100ms
API Latency
06

Compliance Audit Trail

Receive an immutable, timestamped ledger of all tax and royalty calculations for your annual financial audits and regulatory reviews.

Immutable
Ledger
Full History
Retained
A 3-Year Total Cost of Ownership Analysis

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 FactorBuild In-HouseBuy 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)

how-we-deliver
PREDICTABLE DEPLOYMENT

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.

01

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.

1-2 days
Kickoff
Detailed Spec
Deliverable
02

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).

Real-time
Data Sync
ERC-721/1155
Protocols
03

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.

100+
Tax Jurisdictions
Automated
Royalty Splits
04

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.

CSV/PDF
Export Formats
Full API Docs
Deliverable
05

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.

Pen Test
Security Review
Live Support
Post-Launch
06

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.

24/7
Monitoring
Guaranteed
Regulatory Updates
Technical & Operational Details

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.

ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team