CARF requires reporting aggregated transaction data rather than individual transactions. Understanding aggregation rules is essential for accurate reporting and compliance.
Aggregation Principles
Data must be aggregated by:
- Individual user: One report record per user
- Transaction type: Separate totals for each type
- Crypto-asset type: Breakdown by asset
- Reporting period: Typically calendar year
Aggregation reduces data volume and focuses on totals relevant for tax purposes. Authorities receive summary data, not transaction-by-transaction details.
By Transaction Type
Crypto-to-Fiat
Aggregate gross fiat amount received across all sales.
Crypto-to-Crypto
Aggregate fair market value of both assets exchanged.
Transfers
Aggregate fair market value of assets transferred out.
Retail Payments
Aggregate payment value per merchant (if above threshold).
By Crypto-Asset
Within each transaction type, provide breakdown by:
- Asset identifier or name
- Total units transacted
- Aggregate fiat value
By Period
All transactions within the reporting period are included. Timing rules:
- Use transaction execution date
- Not settlement date
- Consistent timezone application
Be especially careful with transactions near year-end. Determine clear rules for which year transactions belong to and apply consistently.
Edge Cases
Partial Period Users
Report only transactions during active period.
Multiple Accounts
Aggregate across all accounts for same user.
Corrections
Submit correction reports for material changes to previously reported data.
Conclusion
Accurate aggregation requires robust data systems and clear business rules. Test aggregation logic thoroughly before production reporting.
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