DAC8: EU Tax Reporting Framework For Crypto-Asset Income And Revenue

On 16 May 2023, the EU Member States operating through the Economic and Financial Affairs Council ("ECOFIN") reached political agreement on new tax transparency rules for all service providers facilitating transactions in crypto-assets for customers resident in the EU. These new reporting requirements on crypto-assets, e-money and central bank digital currencies ("CBDCs") will enter into force on 1 January 2026 through the EU DAC8 Directive.

DAC8 will introduce disclosure and reporting obligations on crypto-intermediaries who facilitate transactions by EU customers.

DAC8 is part of a series of EU tax measures (known as "DACs") which have been implemented over a period of time, originally by Directive 2011/16/EU (DAC) on administrative cooperation in the field of taxation. For example the well-known EU Tax Mandatory Disclosure Directive (covered by our update) was DAC6.