What is DAC8?
DAC8 is the 8th amendment to the EU's Directive on Administrative Cooperation (DAC), the framework that governs how EU tax authorities share information with one another. Adopted on 17 October 2023, DAC8 extends this cooperation to crypto-assets for the first time, creating a single EU-wide standard for reporting crypto transaction data to tax authorities.
Why it exists
Before DAC8, crypto-asset transactions largely fell outside the automatic exchange of information that already applied to traditional financial accounts (bank accounts, securities, etc.) under earlier versions of the DAC. This created a gap that made it harder for tax authorities to see crypto-related income and gains. DAC8 closes that gap by requiring crypto-asset service providers to report user and transaction data, which is then shared automatically between EU tax authorities.
When it applies
DAC8 took effect on 1 January 2026. This is the first year for which crypto-asset service providers must collect the required data, with initial reports due to national tax authorities by mid-2026 and the resulting information exchanged automatically between EU member states.
Who it applies to
DAC8 applies to crypto-asset service providers (CASPs) — platforms and businesses that facilitate crypto exchanges, transfers, or custody for customers. Scope follows the definitions in the EU's Markets in Crypto-Assets (MiCA) regulation, covering crypto-assets broadly, including stablecoins and certain NFTs. Importantly, DAC8's reach isn't limited to providers headquartered in the EU: any platform serving EU-resident customers can fall within scope.
What gets reported
For each reportable customer, a CASP must collect and report:
- Name, address, and Member State(s) of tax residence
- Tax Identification Number(s)
- Date and place of birth (for individuals)
- The aggregate value of relevant exchanges and transfers made during the year
Residency — not nationality — determines which country's tax authority receives the information. For business customers with controlling persons, information may need to be collected and reported at both the entity and individual level.
How it fits with global standards
DAC8 was designed to align closely with the OECD's Crypto-Asset Reporting Framework (CARF), the global equivalent adopted by many non-EU countries. This alignment means the same underlying due diligence and reporting processes largely support both EU-internal exchange (DAC8) and exchange with participating non-EU countries (CARF).
Paybis' obligations under DAC8
Paybis qualifies as a crypto-asset service provider (CASP) and is subject to DAC8 as of its entry into force on 1 January 2026. This means Paybis is required to:
- Carry out due diligence to determine the tax residence of its customers
- Collect and verify identifying information (such as name, address, tax residence, and Tax Identification Number) for reportable customers
- Report the required account and transaction data to the relevant national tax authority on an annual basis
- Support the automatic exchange of that data between EU tax authorities, and, where applicable, with non-EU authorities participating in CARF
These are legal reporting obligations that apply to Paybis as a service provider, regardless of whether a customer buys, sells, transfers, or simply holds crypto-assets. Paybis does not provide tax advice and cannot advise customers on their personal tax filing or reporting obligations.
What this means for customers
If a crypto platform falls under DAC8, it is legally required to report certain account and transaction data on its EU-resident customers to tax authorities, regardless of whether those customers buy, sell, transfer, or simply hold crypto-assets. This is a compliance obligation on the platform — it does not by itself create new tax liabilities, and it doesn't replace a customer's own responsibility to understand and meet their tax obligations.
This article is for general information only and does not constitute tax or legal advice. Tax treatment of crypto-assets varies by country. Customers should consult a qualified tax advisor about their individual circumstances.