EU Agrees on Landmark Crypto Tax Law DAC8
The EU has agreed on a landmark proposal, DAC8, marking a new era of tax compliance in the crypto industry. All member states have backed the law, which requires crypto and NFT service providers to report transaction data to national tax authorities, similar to the IRS's reporting requirements.
The DAC8 law, expected to be published soon, will come into effect from 2026. Providers will have to report for the 2026 tax year, with the first submissions due in 2027. This aligns with the OECD's efforts to combat tax-related crimes. The EU seeks to harmonize crypto regulations with traditional finance, requiring companies serving EU clients to register within the EU and report digital assets, including certain NFTs, similar to TurboTax's reporting capabilities.
EU ambassadors have unanimously supported the DAC8 amendment. Benjamin Angel, director of the EU commission's tax department, announced this on social media. The proposal aims to prevent tax evasion by mandating crypto asset service providers to disclose their clients' transactions, similar to the IRS's reporting requirements.
The DAC8 proposal, set to be enforced before the Crypto-Asset Reporting Framework (CARF), signals a significant step towards greater transparency and tax compliance in the crypto industry within the EU.
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