DAC8 Transposition in Italy: Current Status and Outlook

Italy has undergone a significant shift in its approach to crypto-asset taxation in recent years, moving from regulatory ambiguity to a structured tax framework. The transposition of DAC8 arrives at a pivotal moment for the Italian crypto market, as the country simultaneously implements MiCA and refines its domestic tax treatment of digital assets.

Italy's Evolving Crypto Tax Framework

For years, the Italian tax treatment of crypto-assets was governed by informal guidance from the Agenzia delle Entrate (Italian Revenue Agency) rather than explicit legislation. This changed with the 2023 Budget Law (Legge di Bilancio 2023), which introduced a formal tax framework for crypto-assets.

Under the current regime, capital gains from crypto-asset disposals exceeding a €2,000 annual threshold are taxed at a rate of 26%. The Budget Law also introduced a voluntary disclosure and regularization program (sanatoria) allowing taxpayers to declare previously unreported crypto holdings at favorable terms, and an obligation for taxpayers to declare crypto-asset holdings in their annual tax returns using the Quadro RW (foreign asset declaration) section.

Italy further adjusted its crypto tax rate to 42% for gains exceeding certain thresholds starting from 2026, signaling an increased focus on crypto-asset taxation that aligns with DAC8's transparency objectives.

Regulatory Supervision

Italy's crypto-asset service providers are supervised by the Organismo Agenti e Mediatori (OAM), which maintains a register of Virtual Asset Service Providers (VASPs). Registration with OAM has been mandatory since May 2022, and the register serves as the primary tool for Italian authorities to identify and supervise CASPs operating in the country.

As Italy transitions to MiCA, supervisory responsibility for CASPs is expected to shift to CONSOB (Commissione Nazionale per le Società e la Borsa) for market conduct and to the Banca d'Italia for prudential matters. This transition will affect how DAC8 compliance is supervised and enforced.

Transposition Process

The Ministry of Economy and Finance (Ministero dell'Economia e delle Finanze — MEF) leads DAC8 transposition. Italy typically transposes EU tax directives through legislative decrees (decreti legislativi) adopted by the government under parliamentary delegation.

The Agenzia delle Entrate will serve as the competent authority for receiving DAC8 reports and managing the automatic exchange of information with other EU Member States. The agency is expected to publish a Provvedimento del Direttore (Director's Provision) specifying the technical details of the reporting format and filing procedures.

Italian TIN System

Italy uses the Codice Fiscale as the TIN for both individuals and entities. The Codice Fiscale is a 16-character alphanumeric code assigned to all Italian residents and to non-residents with Italian tax obligations. For entities, the Partita IVA (VAT number) may also serve as a tax identifier.

CASPs operating in Italy will need to collect Codice Fiscale from Italian users and TINs from users resident in other jurisdictions. The collection of Codice Fiscale is already required under OAM registration rules, which should facilitate DAC8 compliance.

Penalties and Enforcement

Italy's penalty framework for tax reporting violations is substantial. Under existing provisions for international information exchange violations, penalties can include fines ranging from €2,000 to €21,000 for failure to file or late filing, additional penalties proportional to the amount of unreported data, and criminal sanctions in cases of willful evasion or obstruction.

The Guardia di Finanza (Financial Police) plays an active role in tax enforcement in Italy, including investigations into unreported crypto-asset income. DAC8 data will provide the Guardia di Finanza with a powerful new tool for identifying non-compliant taxpayers.

Impact on the Italian Crypto Market

Italy has a significant retail crypto user base, with millions of Italians holding or trading crypto-assets. Many of these users trade on foreign platforms, making the cross-border exchange of DAC8 data particularly relevant for Italian tax enforcement.

For Italian CASPs registered with OAM, DAC8 compliance will require building new reporting capabilities (most Italian CASPs have not previously been subject to automated international tax reporting), collecting self-certifications and TINs from their entire user base, implementing the DAC8/CARF XML format, and establishing data quality and validation procedures.

Interaction with the Quadro RW

Italian tax residents are already required to declare foreign-held crypto-assets in their annual Quadro RW. DAC8 will provide the Agenzia delle Entrate with independent verification data to cross-reference against Quadro RW declarations, significantly increasing the risk of detection for non-compliant taxpayers.

This cross-referencing capability is expected to be one of the primary enforcement benefits of DAC8 from the Italian authorities' perspective.

Conclusion

Italy's transposition of DAC8 comes at a time of rapid evolution in the country's crypto-asset regulatory and tax framework. CASPs operating in Italy should prepare for a demanding compliance environment, particularly given the convergence of OAM registration, MiCA authorization, the new 42% tax rate, and DAC8 reporting obligations. Early preparation and investment in compliance infrastructure will be essential to navigate this complex and evolving landscape.