The European Commission released a public consultation on the proposed draft of new transparency rules for digital currency amending Directive 2011/16/EU on administrative cooperation in taxation.
Tax authorities can only ensure taxes are paid if they keep track of the money made from crypto assets well enough. So, the proposal’s goal is to make the laws that are already in place stronger, fill in any holes, and ensure they are being followed appropriately.
The proposed draft includes the following:
- Requiring all reporting cryptocurrency service providers, regardless of size or location, to report transactions of customers located in the EU effective 1 January 2026
- All reporting requirements should be applied to domestic and cross-border transactions and certain non-fungible token transactions
- Imposing a minimum standard for penalties for noncompliant and
- Expanding the number of high-net-worth persons who are eligible for the automatic exchange of advanced cross-border rulings between EU members and who have at least EUR 1 million in managed assets or investments.
The deadline for the public consultation is on 6 February 2023, and the new reporting requirements will go into force on 1 January 2026.
Disclaimer: Reproduced/Adapted with permission from Global VAT Compliance.