DAC8 establishes minimum penalty standards across the EU. Understanding this framework is essential for CASPs operating in European markets.

Minimum Standards

DAC8 requires member states to implement at least:

  • Effective penalties
  • Proportionate sanctions
  • Dissuasive consequences
Harmonization Limits

While DAC8 provides a framework, specific penalty amounts and enforcement approaches vary by member state. Monitor developments in each jurisdiction where you operate.

Penalty Categories

Tier 1: Minor Violations

Late filing, minor errors - up to EUR 50,000

Tier 2: Serious Violations

Material failures, repeated issues - up to EUR 250,000

Tier 3: Very Serious Violations

Willful non-compliance, systematic failures - up to EUR 1,000,000

Member State Implementation

States may exceed minimums:

  • Higher penalty caps
  • Additional violation categories
  • Stricter enforcement
Multi-Jurisdiction Risk

CASPs operating in multiple EU member states may face penalties in each jurisdiction. Compliance must be achieved in every country where you have reporting obligations.

Enforcement

  • Tax authority audits
  • Cross-border cooperation
  • Coordination with MiCA supervision

Appeal Rights

Ensure access to:

  • Administrative review
  • Judicial appeal
  • Proportionality challenges

Conclusion

DAC8 penalties are substantial. Plan compliance programs around avoiding these consequences.

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