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NFT and crypto tax proposals progress in the EU
NFTs and taxes giving you a headache? We have some news for you! In a bold move to combat tax-related criminal activities, the EU has unleashed its proposed Digital Finance Package, DAC8, which provides a ground-breaking recommendation for crypto-asset service providers.
The proposal requires these providers to disclose their clients’ transactions, and puts the spotlight on tax evasion practices. The EU seeks to tighten regulations on cryptocurrencies, harmonizing them with the proven principles of traditional financial services.
DAC8: How it helps governments and NFT tax laws
The DAC8 amendment, an integral part of the EU’s grand vision, mandates that companies serving EU customers register within the bloc and must report digital assets to tax authorities. This includes cryptocurrencies and selected NFTs.
This proactive approach is also in line with the commendable efforts of the Organization for Economic Co-operation and Development (OECD). The EU’s resolute proposal, DAC8, resonates with the mission to combat tax-related crime. It also underscores the need for cryptoasset service providers to report client transactions. With the resounding support of ambassadors, this revolutionary change can be enforced even before the Crypto-Asset Reporting Framework (CARF). This will be released in early 2026, pending approval from the Council of Economic and Financial Affairs.
Support for EU crypto tax laws
The Director of the Commission’s renowned Tax Department, the Honorable Benjamin Angel, took to social media to share the exciting news of unanimous support for the DAC8 amendment. This ground-breaking change, introduced in December 2020, has recently received overwhelming support from EU ambassadors. In addition, unanimous support was expressed in anticipation of the upcoming meeting of economy and finance ministers. This meeting will take place in Belgium on 16 May.
The proposal was originally subject to a potential veto from one of the EU’s 27 member states that make up the famous EU Council. But the discussions surrounding the legislative proposals are held behind closed doors. Something that leaves the public anxiously waiting for the publication of the agreed text.
Recent news reports also offer a glimmer of hope, revealing that EU member states have unanimously rallied behind the new rules. These rules give tax authorities the right to exchange important data regarding traders’ holdings of cryptocurrency. This in turn fosters an environment of collaboration and openness. This unanimous support means that formal agreement on this progressive legislation is imminent. This also brings in a new era of tax compliance in the crypto space.
