The European Union (EU) has put forward the DAC8 proposal, aimed at enhancing the detection and prevention of tax fraud, evasion, and avoidance. This legislative initiative aims to improve the ability of member states to combat these financial crimes. Additionally, the Organization for Economic Co-operation and Development (OECD) is working on a global crypto-asset reporting framework (CARF). These measures reflect the growing importance of regulating digital assets in the modern economy.
The EU's DAC8 proposal strengthens tax enforcement and reporting in the digital economy.
Public
Metaverse
Author: Kristina Dosen
Category:
General information
Views:
966
Content accuracy validation date:
19.05.2023
Content accuracy validation time:
14:19h
One of the key aspects of the DAC8 proposal is the requirement for all reporting crypto-asset service providers, regardless of size or location, to report the transactions of clients residing in the EU. This reporting obligation encompasses both domestic and cross-border transactions, ensuring comprehensive oversight of crypto-asset activities. Notably, the proposal also covers non-fungible tokens (NFTs), acknowledging their increasing popularity and potential for misuse.
The DAC8 proposal expands reporting obligations to include financial institutions reporting on e-money and central bank digital currencies. By involving these institutions, authorities aim to strengthen the monitoring of financial transactions and prevent potential tax evasion facilitated by new forms of digital currency. This broadened scope reflects the need to keep pace with evolving financial technologies.
To enhance tax transparency among high net-worth individuals, the DAC8 proposal extends the scope of the automatic exchange of advance cross-border rulings. This provision applies to individuals with a minimum of €1 million in financial or investable wealth or assets under management, excluding their primary residence. Member States will exchange information on advance cross-border rulings issued, amended, or renewed between January 1, 2020, and December 31, 2025. This exchange facilitates scrutiny of tax arrangements, ensures compliance, and prevents abusive practices.
The DAC8 proposal seeks to establish a common minimum level of penalties for the most serious cases of non-compliance, such as a complete absence of reporting despite administrative reminders. This standardization ensures that tax evaders face appropriate consequences, regardless of the member state involved. By imposing consistent penalties, the proposal aims to deter non-compliant behavior and foster a fair and transparent tax environment.
In parallel with the EU's DAC8 proposal, the OECD is developing the Crypto-Asset Reporting Framework (CARF). This initiative aims to create a global framework for reporting crypto-assets, promoting transparency and accountability in the rapidly expanding digital asset market. The CARF will complement the EU's efforts and contribute to consistent reporting practices on a global scale.
Other news from Metaverse
TLv6 Implementation Marks Significant Shift in EU’s Trust List Format
Public
All countries
Author: Ivana Picajkić
A new EU Trust List format, TLv6, will officially replace TLv5 in May 2025 as part of the updated eIDAS Regulation (EU 2024/1183). It introduces key technical changes like a new URI field, updated signature format, and optional phone number support. Organizations must update their systems to avoid signature validation failures and service disruptions, as TLv5 will no longer be valid once TLv6 take... Read more
New document was uploaded: Recorded webinar: E-invoicing for Global Retailers
Public
All countries
Author: Kristina Dosen
If you are struggling with complex e-invoicing implementations across multiple countries, and if you are concerned about mounting costs, potential delays, or compliance risks, our webinar will help you to learn how global retailers can streamline e-invoicing efficiently! With countries worldwide mandating e-invoicing, international retailers face unique challenges adapting to new regulations acros... Read more
How to spend and store Bitcoin in Switzerland?
Public
Metaverse
Author: Tara Nedeljkovic
Metaverse
Author: Tara Nedeljkovic
Spending Bitcoin in Switzerland is becoming easier as more areas started to adopt cryptocurrency payments. In some cities, like Zurich and Geneva, many restaurants and luxury boutiques accept, for instance, Bitcoin. In Lugano, the largest city in the Italian-speaking region of southern Switzerland, Bitcoin is even considered legal tender as of lately. Across Switzerland, certain online merchants a... Read more
VAT on cryptocurrency sales in Greece, yes or no?
Public
Author: Kristina Dosen
The Greek Tax Administration has determined that the sale of cryptocurrencies is subject to VAT (value-added tax). This decision is based on the fact that cryptocurrencies are not officially recognised by the state as a legal means of payment. Therefore, they do not benefit from the VAT exemption that applies to foreign exchange transactions, banknotes, and coins that are considered legal tender.... Read more
Top 5 European Crypto Exchanges in 2024
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
Many European crypto exchanges operate under different regulations and offer various features and services. Below are the top 5 crypto exchanges in Europe for 2024, based on their popularity of usage, reputation, security, and functionality, not in order. OKX Bybit Binance Kraken Coinbase. OKX is a Seychelles-based platform that offers trading, earning, and growing crypto with 43+ fiat cu... Read more
What is crypto-bridging, and how does it work?
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
Crypto-bridging is the process of connecting different blockchains and enabling the exchange of cryptocurrencies, digital assets, and data across them. Crypto bridges allow different blockchain networks to communicate with one another and exchange assets and information. But how can crypto-bridging be of help to currency owners? It can be of help to owners of these currencies because it enhances... Read more
How bitcoin core v26.0 enhances the security and functionality of the Bitcoin Network
Public
Metaverse
Author: Kristina Dosen
Metaverse
Author: Kristina Dosen
Cryptocurrencies are digital currencies that use cryptography to secure and verify transactions and control the creation of new units. Bitcoin is a type of digital currency that operates on a decentralized network without the need for intermediaries like banks or governments. Bitcoin transactions are recorded and verified on a public ledger called the blockchain, which ensures security and transpa... Read more