BRUSSELS, Oct. 30, 2023-The European Union (EU) has adopted new rules to boost crypto tax compliance, requiring crypto-asset service providers (CASPs) to disclose their customers’ transactions to tax authorities, a news report said. 1
The report of PricewaterhouseCoopers can be seen here: 2
The new rules, which are part of the EU’s Directive on Administrative Cooperation in the Field of Taxation (DAC8), are designed to improve the ability of tax authorities to detect and combat tax fraud, avoidance, and evasion involving crypto assets.
Under the new rules, CASPs will be required to report information on all crypto transactions of customers residing in the EU, regardless of the size of the transactions. This information will include the identity of the customer, the date and amount of the transaction, and the type of crypto asset involved.
The new rules will enter into force on the twentieth day following their publication in the EU’s Official Journal.
The EU’s decision to adopt new crypto tax rules comes amid a growing crackdown on the crypto industry by governments around the world. The United States, for example, has recently proposed new rules that would require crypto exchanges to report certain transactions to the Internal Revenue Service (IRS).
The EU’s new crypto tax rules are likely to have a significant impact on the crypto industry. CASPs will need to update their systems and procedures to comply with the new requirements. Additionally, the new rules could deter some investors from using crypto-assets, as they will be subject to greater scrutiny from tax authorities.
However, the EU has said that the new rules are necessary to protect taxpayers and ensure that the crypto industry is subject to the same rules as other financial sectors. The EU has also said that the new rules will help to make the crypto industry more transparent and accountable.
The new EU crypto tax rules are a major development in the global effort to regulate the crypto industry. It remains to be seen how other countries will respond to the EU’s move. 3
- Forbes India: https://www.forbesindia.com/article/cryptocurrency/eu-adopts-new-tax-data-sharing-rules-to-enhance-crypto-regulation/89095/1[↩]
- PWC: https://www.pwc.com/gx/en/tax/newsletters/tax-policy-bulletin/assets/pwc-dac8-adopts-wider-reporting-requirements-for-crypto-and-other.pdf[↩]
- Forkast: https://forkast.news/eu-adopts-new-crypto-tax-rules-mandate-data-sharing-crypto-firms/[↩]
