Our company operates in the entertainment industry under company number 14847439 in England. As a responsible business, we adhere to the tax regulations of our host country, including those related to the sale of products such as cryptocurrency and virtual assets as defined by the British government. We provide proof of purchase and an invoice for our NFTs to comply with our tax obligations. However, due to the decentralized nature of the blockchain and the lack of compliance with the KYC (Know Your Customer) standard in some marketplaces, we cannot centralize the delivery of invoices. This article will explain how you can request an invoice for your NFT purchase.
Am I eligible to request an invoice?
You are eligible to request an invoice If you were the first to purchase an NFT through a drop from Kanazawa LTD. This applies to any collection created or minted by the company. The following collections are currently available:
If you are the initial buyer of an NFT minted in one of the contracts mentioned, you can request an invoice. Please note that invoices are only available under this circumstance. AirDrops sent through the Earning Program or purchases made in the secondary market do not qualify for invoice issuance as they were not directly traded by Kanazawa LTD or classified as a sale.
You can also request an invoice if you purchased any NFT from any collection in the wallet stated above.
How to request an invoice?
1 – Go to our “Contact”
2 – Enter your e-mail and in “About what you want to talk?” select the option “NFT”
3 – In “What is your question or request about?” select “Request an Invoice”
4 – Inform your wallet. This wallet must be the same one that purchased the NFT drop, if the wallet is different we will fail to carry out the verification.
5 – Enter the ID of the token that made the purchase. If you don’t know how to locate your NFT token ID, see how in this tutorial.
6 – Send the message and we will answer you within 48 hours with the continuation of the process.
Once we receive your request, we will confirm that the purchase meets the specified criteria. We will then require the name and billing address to issue the invoice and verify that you own the stated wallet. Subsequently, whenever you make a drop purchase via the same wallet, a team member will send you an invoice within 48 hours of your purchase. This means that if you have already requested an invoice before, you do not need to make additional requests in the future.
In which currency will my invoice be issued?
Unfortunately, most governments are not yet ready to embrace blockchain technology. As a result, we follow the tax rules of the country where the company is based. Our invoices are issued in fiat (sterling pounds) even if you made a cryptocurrency transaction. To calculate the conversion value, we use the closing price the day before the purchase (UTC) based on Kraken conversion rates. For example, if you bought an NFT or drop on July 19, 2023, we would use the closing price on July 18, 2023, at 11:59 PM.
You may need to convert the invoice from brittsh pounds to your local currency to calculate the tax deduction. Each country has different income tax rules for purchases made in foreign currencies. If you need help declaring your NFT in your country of tax domicile, we recommend seeking the assistance of an accountant.