DAC8 is not a static framework. The European Commission has built review clauses into the directive, and the OECD continues to develop the underlying CARF standard. This article examines the changes that CASPs should anticipate.
Built-in Review Clauses
DAC8 includes provisions for the European Commission to review the directive's effectiveness and scope. These reviews are expected to assess whether the directive is achieving its tax transparency objectives, whether the scope should be expanded to cover additional crypto-asset activities (such as DeFi), whether reporting thresholds should be introduced or modified, and whether the XML schema and data fields need updating.
Potential Scope Expansions
The most likely future amendments include extending DAC8 to cover decentralized finance (DeFi) activities, broadening the definition of reportable crypto-assets to capture new asset types, including NFTs more comprehensively within the reporting scope, and requiring reporting on staking, lending, and other yield-generating activities.
OECD CARF Updates
As the OECD refines the CARF standard based on implementation experience across jurisdictions, DAC8 will likely be updated to maintain alignment. CARF updates may include new data fields, revised due diligence procedures, updated XML schema versions, and clarified definitions and classification criteria.
Technical Updates
The XML schema will evolve over time to accommodate new data requirements, improve validation rules, and address issues identified during implementation. CASPs must build reporting systems that can be updated to reflect schema changes without requiring complete rebuilds.
Conclusion
CASPs should build flexible, maintainable compliance systems that can adapt to regulatory changes. Monitoring the European Commission's review process and the OECD's CARF development is essential for staying ahead of future amendments.
Preparing for DAC8?
Our team helps CASPs with gap analysis, transposition tracking, TIN validation, and XML report generation.