By Bitcoin.com - 6 months ago - Reading Time: 2 minutes
Tax Authorities in EU to Share Transaction Data Reported by Crypto Firms
New EU rules will introduce automated exchange of information on crypto revenues reported by service providers in the sector. A new directive adopted by the Union expands existing registration and reporting obligations as well as cooperation between tax administrations across the bloc.
Information Sharing Between National Tax Administrations in EU to Cover Crypto Assets
The Council of the European Union has adopted a directive amending EU rules governing administrative cooperation in the field of taxation in order to include the reporting and automatic exchange of information on revenues from cryptocurrency transactions.
The move seeks to cover additional categories of income and assets by enlarging the scope of the legislative framework. Under the new rules, the mandatory automatic exchange between tax authorities will apply to data handed over by crypto-asset service providers. In a press release the Council stated:
So far, the decentralized nature of crypto assets has made it difficult for member states’ tax administrations to ensure tax compliance. The inherent cross-border nature of crypto assets requires strong international administrative cooperation to ensure effective tax collection.
The updated regulations will apply to a broad range of crypto assets, including those issued in a decentralized manner, stablecoins, e-money tokens, and some non-fungible tokens (NFTs), expanding the definitions in the EU’s newly adopted Markets in Crypto Assets (MiCA) law.
The new directive, which was adopted unanimously by the member states’ finance ministers on Tuesday, was presented by the European Commission in December 2022 and approved by the European Parliament in September of this year.
DAC8 amends Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation (DAC) and will enter into force 20 days after its publication in the Official Journal of the EU. It also features provisions on the exchange of advance cross-border rulings for wealthy, or high-net-worth, individuals.
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Original source: Bitcoin.com