{"id":61886,"date":"2023-10-18T06:19:34","date_gmt":"2023-10-18T10:19:34","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=61886"},"modified":"2023-10-18T06:19:37","modified_gmt":"2023-10-18T10:19:37","slug":"eu-adopts-crypto-tax-reporting-rule-dac8","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/eu-adopts-crypto-tax-reporting-rule-dac8\/","title":{"rendered":"EU Adopts Crypto Tax Reporting Rule DAC8"},"content":{"rendered":"\n

The Council of the European Union has formally adopted the Directive on Administrative Cooperation (DAC8), a regulation that requires crypto brokers<\/a> and exchanges to report the tax information of their customers. The rule will enter into force after it\u2019s published in the Official Journal of the EU.<\/p>\n\n\n\n

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DAC8 is the eighth version of the Directive on Administrative Cooperation, a series of regulations that aim to improve the exchange of information and cooperation between tax authorities in the EU. <\/a><\/p>\n\n\n\n

The directive specifically targets the crypto-asset sector, which has been growing rapidly in recent years.<\/p>\n\n\n\n

It was proposed in May 2023, following the enactment of the Markets in Crypto-Assets (MiCA) legislation, which provides a comprehensive framework for regulating crypto-asset activities in the EU.<\/p>\n\n\n\n

DAC8\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> complements MiCA by introducing tax reporting obligations for crypto-asset service providers (CASPs), such as brokers, exchanges, custodians, and wallet providers.<\/p>\n\n\n\n

Under DAC8, CASPs will have to collect and report the identity and residence of their customers, as well as the type, value, date, and place of origin and destination of their crypto-asset transactions. <\/p>\n\n\n\n

This information will be shared with the tax authorities of the member states where the customers are residents or have a permanent establishment.<\/p>\n\n\n\n

DAC8 aims to prevent tax evasion and fraud involving crypto-assets, as well as to ensure a level playing field for all taxpayers in the EU. <\/p>\n\n\n\n

The tax rule also aligns with the Crypto-Asset Reporting Framework (CARF), an initiative by the Organisation for Economic Cooperation and Development (OECD) to develop global standards for crypto-asset tax reporting.<\/p>\n\n\n\n

DAC8 received overwhelming support from the EU Parliament, which adopted it with 535 votes<\/strong> in favor and 57<\/strong> against in September. <\/p>\n\n\n\n

The Council of the EU formally adopted it on October 17, 2023, after reaching a political agreement in June. <\/p>\n\n\n\n

The regulation will enter into force 20 days<\/strong> after its publication in the Official Journal of the EU and will apply from January 1, 2024.<\/strong><\/p>\n\n\n\n

The adoption of DAC8 comes at a time when other jurisdictions are also pushing for stricter crypto tax reporting rules. <\/p>\n\n\n\n

In the United States, seven senators urged the Treasury Department and the Internal Revenue Service (IRS)<\/a> to expedite a rule that would impose similar reporting requirements for crypto brokers. <\/p>\n\n\n\n

They criticized the rule's two-year delay in implementation, scheduled to take effect in 2026<\/strong> for transactions in 2025.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Council of the European Union has formally adopted the Directive on Administrative Cooperation (DAC8), a regulation that requires crypto brokers and exchanges to report the tax information of their customers. The rule will enter into force after it\u2019s published in the Official Journal of the EU. DAC8 is the eighth version of the Directive […]<\/p>\n","protected":false},"author":44,"featured_media":61905,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[12094,132,16792,16793],"class_list":["post-61886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-adoption-2","tag-crypto","tag-dac8","tag-europe-union"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/10\/EU-crypto-.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/61886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=61886"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/61886\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/61905"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=61886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=61886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=61886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}