EU Projects DAC8 Could Generate Billions in Additional Tax Revenue

When the European Commission proposed DAC8, it included an estimate of the potential fiscal impact. The projection: approximately 1.7 billion euros in additional annual tax revenue from crypto transactions that were previously underreported or unreported.

Where Does This Number Come From?

The Commission's estimate is based on:

• The size of the European crypto market
• Estimated rates of non-compliance with existing tax rules
• Expected improvements from automatic information exchange

Like any projection, it involves assumptions and uncertainties. The actual figure could be higher or lower depending on market conditions and enforcement effectiveness.

What This Suggests About Current Compliance

A revenue projection of this size implies that a meaningful portion of taxable crypto activity hasn't been properly reported. This isn't necessarily intentional tax evasion—it may also include:

• Taxpayers unaware of their reporting obligations
• Complexity making accurate reporting difficult
• Cross-border activity falling through gaps

Justifying Compliance Costs

DAC8 imposes real costs on crypto service providers: new systems, staff training, ongoing reporting obligations. The revenue projection helps justify these costs from a policy perspective—the argument being that the tax recovered exceeds the compliance burden imposed.

For Individual Taxpayers

The implicit message: tax authorities expect to find unreported income. If your crypto taxes aren't fully in order, the risk of detection is increasing. The window for voluntary correction is narrowing.

Beyond Revenue

Tax revenue is one benefit, but DAC8 proponents also cite:

• Fairness between crypto and traditional investments
• Reduced incentives for money laundering
• Better data for economic policymaking

The Bottom Line

Whether or not the exact revenue projection proves accurate, it signals clear regulatory intent: crypto is now part of the tax system, and enforcement will follow.