Key Takeaways
- The State Tax Inspectorate updated user reporting rules for crypto platforms under Lithuania’s Order VA-63.
- Rules align with EU DAC8 standards, requiring CASP platforms to gather user tax data to avoid penalties.
- Full operational reporting takes effect across the EU on Jan. 1, 2026, with data exchanges starting in 2027.
Customer Data and Due-Diligence Criteria
Lithuania’s tax authority, the State Tax Inspectorate, has issued updated procedures clarifying user reporting requirements for crypto asset service providers as European authorities prepare to enact stricter tax transparency rules.
The amendments, enacted via Order VA-63, refine operational definitions and legal reporting criteria for crypto-asset users, aligning national tax procedures with the European Union’s Eighth Directive on Administrative Cooperation (DAC8) and the OECD’s Crypto-Asset Reporting Framework (CARF).
Under the updated framework, regulated crypto asset service providers and local crypto operators must refine customer due-diligence protocols to capture detailed user identification data, transaction records, and tax residency information.
According to a Bloomberg report, key elements of the reporting framework include clarified parameters determining which individual and corporate crypto asset users fall under mandatory reporting requirements.
The framework also provides technical instructions for platforms regarding customer identification numbers, transaction logs, and account balances. Additionally, it references international standard interpretations where specific technical scenarios are not explicitly addressed under national law.
EU-Wide Implementation
Further provisions exempt entities that have already registered and fulfilled reporting duties in another EU member state from duplicate filings in Lithuania.
The updated reporting directives follow regulatory adjustments implemented earlier in the year governing stablecoins and payment processing.
Since March 2, crypto companies conducting certain transactions involving electronic money tokens, or EMTs, must hold additional authorization to provide payment services. The requirement covers activities such as transferring EMTs on behalf of customers and operating certain custodial wallets that allow third-party transfers.
However, crypto-to-crypto and crypto-to-fiat exchanges involving EMTs are not automatically classified as payment services under this guidance.
The updated rules pave the way for full operational reporting to take effect across the EU on Jan. 1, 2026. Data collected by platforms throughout 2027 will be automatically exchanged between EU member state tax administrations beginning in mid-2027.
Tax compliance experts note that while the updated rules do not alter Lithuania’s baseline capital gains tax rates on virtual assets, crypto operators and financial institutions serving Lithuanian residents must update customer onboarding workflows and back-end systems immediately to avoid compliance penalties.
