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EU Crypto Tax Alert: Crypto Companies Must Report All Client Transactions to EU Tax Authorities, Taxtris Jumps to the Rescue

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EU Crypto Tax Alert: Crypto Companies Must Report All Client Transactions to EU Tax Authorities, Taxtris Jumps to the Rescue

January 02
20:48 2023
Taxtris is an API-first tax automation software, offering a host of services to web3 business entities and online companies. The firm’s professionals talked about the new crypto regulations in the EU, advising its clients about how to adapt to the new landscape.

The Directive on Administrative Cooperation, the so-called DAC has been recently updated by the European Commission. The latest DAC8 directive is another step European legislators and regulators took toward tracking and pinpointing crypto asset data exchanges.

The surface of the rapidly-evolving crypto space was only scratched until the release of the DAC8 directive; most experts wrongly predicted that it would take multiple years, if not decades to propose a coherent plan to organize a structured system that could reliably and accurately track crypto data exchanges.

After slightly more than two years since the latest Directive on Administrative Cooperation, the European Commission will set things in motion, obliging crypto intermediaries, such as banks, digital exchange owners, crypto platforms, or asset management companies to report transaction data of their clients.

The purpose behind DAC8’s launch is to address tax fraud, evasion, and avoidance in the European Union. With the size of the crypto industry rising and fiat markets plummeting, European Commission was motivated to take action.

Although a comprehensive system for taxing crypto gains has not yet been built, governments and tax officials now have the green light to pursue and take legal actions against crypto holders while crypto exchanges and open markets will need to tread carefully.

Taxtris, a UK-based company specializing in automated tax services lent its hand to European consumers, crypto holders, NFT enthusiasts, and people about to enter the crypto space edifying them about the impacts of the new DAC8 directive, and about how crypto exchanges and tax reports should be approached in the future.

The company’s spokesperson imparted that “DAC8 applies to crypto companies with EU-resident customers, regardless of whether the company is based in or outside of the EU.

Crypto companies and intermediaries are now obliged to collect and verify customer information, ban non-complying customers, and provide detailed information about all transactions while crypto companies based outside but operating within the EU must choose a jurisdiction in which to register for DAC8 purposes.

Since DAC8 is scheduled to go into effect as of January 1st, 2026, crypto companies and intermediaries will have little time to prepare and adapt to the new landscape.

As the demand for integrated tax calculation tools rises, Taxtris offers a solution. Crypto businesses can leverage the benefits of this API-first crypto tax software to quickly add a crypto tax calculator into their cryptocurrency exchange.

Offering a variety of automated tax services, including but not limited to data capturing, tax optimizing, PDF tax report generation, and most importantly, crypto tax calculation, Taxtris will play an important role when the European crypto regulations begin changing.

More information about Taxtris is available on the company’s official website.

Media Contact
Company Name: Taxtris
Contact Person: Rosario Junco
Email: Send Email
Country: United Kingdom
Website: https://www.taxtris.com/