Explanation
Data is exchanged between member states. In practice it means your tax authority knows which balances you hold at European platforms.
Automatic data exchange
DAC8 extends European exchange of tax information to crypto. Crypto service providers report balances and transactions per client annually to their national tax authority, which forwards the data to the client's country of residence. The rules apply from 2026, with the first reporting covering that year.
Practical consequence
The era in which tax authorities knew nothing is over. Make sure your return matches what platforms report, including for years in which you only bought and sold nothing. Your own log with date, amount, price and platform per transaction is the cheapest insurance against a request for clarification.
Key takeaways
- Reporting from 2026, EU-wide.
- Foreign platforms are covered too.
- Keep your own transaction log.