EU Crypto Tax Plans Include NFTs, Foreign Companies: Draft Text Shows

• The European Union plans to force crypto companies to give tax authorities details of their clients’ holdings, even if they’re based outside the bloc or offering non-fungible tokens (NFTs).
• The data-sharing law is set to be agreed by finance ministers next week and will allow tax authorities to share data within the 27-nation bloc.
• The bill closely matches proposals made by the European Commission in December 2022, as part of a bid to stop EU residents stashing crypto abroad to hide it from the taxman.

EU Crypto Tax Plans Include NFTs, Foreign Companies

The European Union plans to force crypto companies—including those based outside the bloc and those offering non-fungible tokens (NFTs)—to provide tax authorities with details of their clients’ holdings. This would be done through a data-sharing law that is set to be agreed by finance ministers next week. This proposed law would allow for taxes authorities across all 27 nations in the EU to share data between them.

Draft Text Shows Details

The bill, dated May 5th, closely resembles what was proposed by the European Commission back in December 2022. The aim of this proposal is to prevent EU citizens from hiding their crypto asset holdings abroad in order evade taxes. In addition, this new bill brings forward a previous deadline (set for December 2025) by one year; requiring crypto asset operators be registered before January 1st 2026.

Unanimous Acclaim at Meeting

Commission officials have stated that the bill received unanimous acclaim at a meeting on Wednesday held among finance ministers. However, people familiar with the matter reported that some finance ministers had not yet received approval from parliaments for this new piece of legislation.

Data Sharing Across Bloc

This law—known as DAC8—will enable data sharing across all member countries within the EU bloc. By providing access to information about these digital assets and transactions conducted with them, DAC8 will make it easier for governments and financial institutions alike to track money laundering and other criminal activities conducted with cryptocurrency funds.

Laws Set To Be Agreed Next Week

If approved next week as planned, these laws will require crypto companies involved in trading or dealing digital currency products such as NFTs or foreign companies operating inside Europe’s borders register themselves with local tax authorities upon entry into effect on January 1st 2026. As such, these companies must adhere and comply with local taxation laws when conducting business operations inside Europe’s borders regardless of their geographical location outside Europe’s borders or offer non-fungible tokens (NFTs).