EU administrative cooperation in taxation: Italy’s implementation of DAC8 at a glance

Under the broader “tax decluttering and simplification” agenda, the EU is planning to remove duplicative obligations under Council Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation (DAC). The European Commission has recently published its multiannual report on the evaluation of the DAC – COM (2025) 695 – identifying some areas for improvement to consolidate and simplify the directive and to ensure a more consistent application across all EU member states.

Meanwhile, new obligations under Council Directive 2023/2226 (DAC8), amending the DAC, will apply starting from January 1 2026, and Italy has been adopting domestic provisions for its transposition in a timely fashion.

The directive will amend and extend the scope of the DAC with respect to the automatic exchange of information in the following categories.

The data collected and exchanged refers to individuals or beneficial owners of relevant investments and includes personal identification data, as well as information on the transactions subject to automatic exchange. The crypto-assets to be reported comprise all assets that can be used for investment and payment purposes (including e-money, e-money tokens, and central bank digital currencies). Reportable transactions include any exchanges or transfers involving reportable crypto-assets.

Exchanged data will cover:

• Identification details of crypto-asset service providers (CASPs);

• Identification details of reportable users (including persons exercising control over relevant entities);

• Market identifiers; and

• Transaction-level information, depending on whether the activity constitutes an exchange or a transfer.

Reporting obligations apply to CASPs with EU-resident clients. DAC8 defines two categories of reporting entities:

• Crypto-asset service providers – legal persons or undertakings whose professional activity consists of providing crypto-asset services to third parties. The definition mirrors that contained in the Markets in Crypto-Assets Regulation (MiCA, Regulation (EU) 2023/1114), already applicable throughout the EU.

• Crypto-asset operators – providers of crypto-asset services that do not fall within the MiCA framework.

Reporting CASPs must conduct due diligence procedures to identify reportable users and provide transaction information. It is worth noting that DAC8 is the EU’s adoption of the OECD’s Crypto-Asset Reporting Framework (CARF), with some specific features such as imposing penalties, restrictions on customer activities, and notifications under the General Data Protection Regulation. Since 2022, the CARF has extended automatic exchange of information to the crypto-asset sector to ensure that tax authorities have the information needed on cross-border crypto-asset transactions so that taxpayers comply with their tax obligations under domestic rules. Seventy-five jurisdictions have made a commitment to implement the CARF and to exchange information from 2027 or 2028.

In this category, high-net-worth individuals are those who hold a minimum of €1,500,000 in financial or investable wealth, or in assets under management, excluding their main private residence. Rulings concerning residence for tax purposes are also in scope, while advance cross-border rulings concerning taxation at source with regard to non-residents’ income from employment, director’s fees, or pensions are excluded.

This category concerns dividends or other income treated as dividends that are not paid or cashed in a custodial account.

DAC8 also improves the rules on reporting and communication of the tax identification number, a system that has historically been ineffective due to inconsistent practices among member states.

The directive provides member states with a degree of flexibility in its implementation, concerning penalties and compliance measures. The choice to impose penalties remains at national discretion regarding their nature, size, and implementation, although penalties related to exchange of information should be “effective, proportionate and dissuasive”.

Leaving the introduction of penalties to member states represents a structural limitation of the DAC framework, as this original approach has led, over the years, to a wide variation in penalty measures between member states and, consequently, to certain discrepancies.

Italy has just completed the legislative process for transposing the directive: the Council of Ministers gave final approval to the legislative decree, already approved by Parliament. Italian provisions are fully aligned with DAC8, without any substantive modification or additional exemptions, extensions of obligations, or deviations.

The Italian legislator has expressed the intention to technically harmonise domestic rules with the CARF to avoid duplication or inconsistencies, reflecting a rigorous approach. Key choices regarding DAC8’s optional provisions include:

• A reporting deadline of June 30 of the year following the reporting period, for reporting submitted to the Italian Revenue Agency.

• Penalties ranging from €1,500 to €15,000 for failures in reporting or due diligence obligations.

• Operational measures delegated to the Italian Revenue Agency, which will define electronic formats, transmission channels, and operational procedures through technical provisions.

• Mandatory registration of reporting entities with the Italian Revenue Agency, supported by coordinated notifications from the Bank of Italy and the public authority responsible for regulating the Italian financial markets (CONSOB). This reflects a multi-agency structure designed to jointly manage data exchange and the supervisory function.

Despite the clarity of the legislative framework, certain operational aspects remain open, particularly those relating to technical implementation and coordination between tax authorities and anti-money laundering supervisory bodies. Until the Italian Revenue Agency issues the relevant technical specifications, operators face a degree of uncertainty regarding the practical management of their new obligations.

The directive significantly enhances the volume and quality of information available to member states’ tax authorities, strengthening their ability to detect undeclared income or cross-border tax planning schemes. DAC8 also contributes to a progressive harmonisation of tax transparency standards within the EU.

With reference to the exchange of information on crypto-assets, beyond the immediate tax and technical implications, DAC8 must also be read within the context of rapid technological innovation. The accelerating development of blockchain-based infrastructures, decentralised finance, and tokenised financial instruments is generating new forms of taxable events that require adaptable reporting mechanisms.

A particularly relevant frontier is the emerging interaction between crypto-assets and the metaverse. Several virtual environments already rely on crypto-assets for transactions, asset ownership, and the monetisation of digital goods or services. As these platforms evolve, the volume and complexity of taxable events within virtual worlds are expected to increase.

In this changing environment, the challenge is whether the current international regulatory framework – which includes DAC8 – will be flexible and capable of adapting to the evolving forms of digital value.