The European Parliament has approved DAC8, a measure that introduces tax reporting requirements for crypto transactions across the European Union (EU).
With a casting vote of 535 in favor, 57 against, and 60 abstentions, the proposed rule has passed its final legislative hurdle and is on the verge of becoming law.
The DAC8 rule, designed to amend the EU Directive on Administrative Cooperation (DAC), requires crypto asset service providers to report transactions involving EU customers to the bloc’s tax authorities. Once implemented, the DAC8 will pave the way for the automatic exchange of information on crypto assets between tax authorities in EU countries.
Providers and operators
According to an impact assessment report from the European Parliamentary Research Service (EPRS), the European Commission estimates that the introduction of such an EU-wide reporting framework for crypto assets could generate between 1 and 2.4 billion euros in additional tax revenue annually.
The EPRS report provides details of the DAC8 Directive, which is closely aligned with the provisions of the OECD Common Reporting Standard (CRS). The directive outlines two types of entities that are required to report information to local authorities: crypto asset providers, who offer one or more crypto asset services to third parties, and crypto asset operators, who provide services other than offering crypto assets. asset services provider. These entities, classified as reportable cryptoasset service providers (RCASPs), will be subject to the DAC’s reporting requirements if they have reportable users within the EU, regardless of the size of the RCASP or their place of residence.
The directive covers all crypto assets that can be used for investment and payment purposes. Electronic money, electronic money tokens and central bank digital currencies (CBDCs) are also taken into account. Reportable transactions by the RCASPs include all exchange transactions and transfers of reportable crypto assets, including transactions of reportable crypto assets for fiat currencies and transactions between reportable crypto assets.
As the EPRS report indicates, the reporting arrangements will come into effect on January 1, 2026, allowing sufficient time for the MiCA regulations to be brought into effect in advance.