Lithuania’s State Tax Inspectorate has updated reporting procedures for crypto-asset service providers, tightening the data firms must collect on users as the European Union moves toward broader tax transparency rules for digital assets.
The changes were introduced under Order VA-63 and are intended to align Lithuania’s national framework with the EU’s Eighth Directive on Administrative Cooperation, known as DAC8, as well as the OECD’s Crypto-Asset Reporting Framework, or CARF.
Broader reporting and due-diligence requirements
Under the revised procedures, regulated crypto-asset service providers and local crypto operators are expected to sharpen customer due-diligence processes. The updated framework calls for more detailed user identification, transaction records, and tax residency information to be collected and maintained.
The order also refines operational definitions and legal reporting criteria tied to crypto-asset users. In practice, the move gives firms clearer instructions on what information must be captured as authorities prepare for stricter oversight of cross-border crypto activity.
No duplicate filing for some EU-based reporters
Lithuania’s updated rules include an exemption for entities that have already registered and met reporting obligations in another EU member state. Those firms will not have to submit duplicate filings in Lithuania under the clarified procedures.
That carve-out reflects the cross-border nature of the bloc’s new reporting system, which is designed to work across member states rather than force repeated disclosures in every jurisdiction where a provider has users or operations.
Part of a wider regulatory shift this year
The new reporting guidance follows other crypto-related regulatory adjustments adopted earlier in the year, including rules affecting stablecoins and payment processing.
Since March 2, crypto companies involved in certain transactions using electronic money tokens, or EMTs, have been required to obtain additional authorization to provide payment services. The requirement applies to activities such as transferring EMTs on behalf of customers and operating certain custodial wallets that enable third-party transfers.
At the same time, the guidance stated that crypto-to-crypto and crypto-to-fiat exchange services involving EMTs are not automatically treated as payment services.
Implementation timeline across the EU
The Lithuanian changes are intended to prepare the market for EU-wide operational reporting set to begin on Jan. 1, 2026. From that point, crypto platforms will be expected to report under the new framework across the bloc.
Information gathered during 2027 is scheduled to be automatically exchanged among EU member state tax administrations starting in mid-2027. According to tax compliance specialists cited in the report, the new procedures do not change Lithuania’s underlying capital gains tax rates for virtual assets, but they do require crypto operators and financial institutions serving Lithuanian residents to update onboarding processes and internal systems to reduce the risk of compliance penalties.
Source: news.bitcoin.com