EU Crypto tax reporting rules take effect on January 1, 2026. Under DAC8, crypto-asset service providers will have to collect and report detailed user and transaction data to national tax authorities, which will then exchange the information across EU member states. Providers have a transition period until July 1, 2026, after which non-compliance may trigger penalties under national law.

The new framework extends the EU’s long-running administrative cooperation in taxation to digital assets, aiming to close a reporting gap that has left parts of the crypto economy outside standard tax transparency.

What DAC8 requires from crypto providers

DAC8 (Directive 2011/16/EU on administrative cooperation in the field of taxation) broadens existing reporting obligations to cover crypto assets and the entities that facilitate their use, including exchanges and brokers.

Under the directive, providers must collect and submit information on customers and reportable transactions. National tax authorities will then automatically share the data across the bloc, creating a more uniform view of crypto holdings, trades, and transfers, similar to the visibility already applied to bank accounts and securities.

From banking rules to digital assets

Although DAC8 is often framed as a new transparency measure for digital assets, it builds on an older framework. The original directive was designed primarily around banking transactions. As Blockchain-based assets moved closer to the financial mainstream, the rules were updated to reflect the growth of crypto markets.

The amendment extends the automatic exchange of information to include transactions involving crypto assets, as well as certain noncustodial revenues. It also reflects updates to the Common Reporting Standard (CRS) by the Organisation for Economic Co-operation and Development (OECD).

Beyond income and capital gains visibility, DAC8 broadens how exchanged information can be used, including value added tax (VAT), indirect taxes, customs duties, and certain non-tax purposes tied to anti-money laundering and countering the financing of terrorism.

DAC8 also expands member states’ reporting duties toward the European Commission, requiring annual monitoring of the effectiveness of administrative cooperation and of measures targeting tax evasion and avoidance.

While the directive applies from January 1, 2026, crypto firms have a transition period. Providers have until July 1, 2026, to align reporting systems, customer due diligence processes, and internal controls with the new requirements.

Sources:

https://www.coindesk.com/policy/2025/12/24/eu-s-crypto-tax-reporting-starts-in-january-with-threat-of-asset-seizure

https://www.ey.com/en_gl/technical/tax-alerts/eu-adopts-directive-introducing-tax-transparency-rules-for-crypt

https://www.ey.com/content/dam/ey-unified-site/ey-com/en-gl/technical/tax-alerts/documents/st-10215-2023-init_en.pdf