Companies of any size processing crypto transactions for customers in the European Union will soon need to report these for tax purposes under proposed legislation. The policy, put forward as an addition to a wider package of anti-tax evasion measures, says that even non-European crypto-asset operators will need to report transactions if they have clients who are EU residents. Companies would need to provide personal information about their users, including where they live and when and where they were born, to tax authorities. Alongside this, they would need to include the amount that person spent buying crypto, or how much they received from selling them. Policymakers said in a document outlining the directive that introducing an obligation to report income earned through crypto investments would help EU member states get an accurate picture of what taxes they are owed, leading to additional income of as much as €2.4 billion ($2.53 billion).
Read more : EU to ‘Level Playing Field’ for Crypto Firms With Uniform Tax Rules.
