DAC8 & CARF
DAC8 (Directive on Administrative Cooperation 8) and CARF (Crypto-Asset Reporting Framework) represent the unified European Union and OECD international regulatory architecture for the mandatory, automated collection and cross-border exchange of crypto-asset tax data. Together, these standards eliminate cross-border tax opacity by requiring centralized exchanges, custodial brokers, and Crypto-Asset Service Providers (CASPs) to report comprehensive taxpayer transaction records directly to revenue agencies worldwide.
DAC8 vs CARF: framework comparison
| Dimension | DAC8 (European Union) | CARF (OECD / Global) |
|---|---|---|
| Institutional Authority | European Union (Council Directive EU 2023/2226) | Organization for Economic Co-operation and Development (OECD) |
| Geographic Scope | All 27 EU Member States | Global adoption across 40+ participating international jurisdictions |
| Reporting Entities | All MiCA-authorized CASPs and foreign platforms serving EU residents | Reporting Crypto-Asset Service Providers (RCASPs) globally |
| Information Exchanged | Taxpayer identities, wallet addresses, gross transaction proceeds, and year-end asset balances | Standardized annual reports covering fiat-crypto, crypto-crypto, and retail payment transactions |
Data points transmitted to tax authorities
Under DAC8 and CARF rules, reporting intermediaries must collect and automatically transmit specific fiscal metrics annually:
- Taxpayer identification: Legal name, physical address, date of birth, country of tax residency, and Taxpayer Identification Number (TIN / Codice Fiscale).
- Transaction telemetry: Aggregated gross proceeds from crypto-to-fiat sales, crypto-to-crypto exchanges, and spending on goods and services.
- Wallet addresses: Public blockchain addresses linked to external self-custody deposits and withdrawals exceeding statutory thresholds.
- Year-end closing balances: Aggregate fair market valuation of all crypto-assets held in custody on December 31.
Cross-border enforcement and reconciliation
Data collected under DAC8 and CARF is transmitted electronically between national revenue services. If an investor's declared figures on annual tax returns (such as capital gains schedules or foreign asset monitoring forms) diverge from the automated records reported by exchanges, tax authorities initiate automated cross-matching audits. For practical calculation and tax declaration rules in specific jurisdictions (for example, under Italian tax residency), see our dedicated guides on Calculating Capital Gains and Cost Basis and the Italian Crypto Tax Return Guide.
The information in this article is for general literacy only. It is not tax, legal, financial, or accounting advice and does not replace Agenzia delle Entrate instructions or advice from a qualified professional for your circumstances. It must not be used to evade tax obligations. We make no warranty as to accuracy, completeness, or currency; rules and practice can change. Do not file returns or make decisions based solely on this text. RIXTO is not liable for loss arising from use of, or reliance on, this information.