Latvia: Partial implementation of reporting obligations for cryptoasset service providers (DAC8)
The amendments are scheduled to apply from January 1, 2026.
Latvia on November 21, 2025, published amendments to the Law on Taxes and Duties that partially implement the reporting obligations for cryptoasset service providers under Directive on Administrative Cooperation (2023/2226) (DAC8) and introduce elements of the OECD cryptoasset reporting framework (CARF).
Key takeaways include:
- Introduction of DAC8 reporting obligations for cryptoasset service providers: In scope providers will be required to collect and verify information on reportable users and cryptoasset transactions, applying specific due diligence procedures. Relevant information will be communicated to the Latvian tax authorities and exchanged with the tax authorities of other EU Member States where the reportable user is tax resident.
- Authority to issue regulations: The amendments empower the Cabinet of Ministers to adopt detailed rules on the triggers of reporting obligations, the scope and procedures for reporting and measures relating to the automatic exchange of information in-line with DAC8 and CARF.
- Penalties for non-compliance: Penalties of up to €14,000 may be imposed for failures to comply with the new reporting obligations.
- Updates to financial account rules: The amendments expanded the notion of financial assets to include electronic money and central bank digital currency, as defined. The term cryptoasset aligns with Article 3(1)(5) of the Markets in Cryptoassets Regulation (MiCA).
The amendments are scheduled to apply from January 1, 2026.
Note that DAC8 requires EU countries to expand the scope of the automatic exchange of advanced cross-border rulings to also include rulings issued to individuals (DAC3) and provides for amendments to the reporting obligations in respect of cross-border arrangements (DAC6). Neither of these aspects have been included in the bill.
Read a December 2025 report prepared by KPMG’s EU Tax Centre