Lithuania Cracks Down on Crypto Tax Reporting Amid EU DAC8 Directive

Overview of the New Rules

Lithuania has updated its crypto reporting regime under the European Union's DAC8 directive. The new order amends an earlier set of rules, Order VA-119, which laid the groundwork for crypto reporting. The updated rules aim to increase transparency and cooperation among tax authorities.

Key Changes to the Reporting Requirements

The new order introduces new definitions for who counts as a reportable person, streamlines the registration process, and updates due diligence requirements. Providers must collect and submit user identities, tax residencies, account balances, and details on transactions exceeding $50,000 equivalent.

Annual Reports and Registration Notices

Annual reports are due by May 31 each year, covering data from the previous calendar year. The first deadline is May 31, 2027, covering data from calendar year 2026. Notifications for registration or exemption claims are also due by May 31 of the following year.

Relief for Fully Compliant Providers

Providers that are fully compliant with reporting obligations in another EU member state can avoid duplicate reporting in Lithuania under specific conditions.

Additional Licensing Requirements

Starting March 2027, certain custodial or transfer activities will require authorization as electronic payment services.

Alignment with EU Rules

Lithuania's changes are built to align with the EU's Crypto-Asset Reporting Framework and the OECD's CARF. The full EU-wide automatic data exchange is slated to begin in mid-2027.

Conclusion

Lithuania's updated crypto reporting rules are designed to increase transparency and cooperation among tax authorities. The new rules will apply from the 2026 reporting period onward and will be enforced by the State Tax Inspectorate.