DAC8 Reporting in Latvia: Practical Guide

Latvia has been developing its regulatory approach to crypto-assets alongside its EU obligations. The Valsts ienemumu dienests (VID), Latvia's State Revenue Service, is expected to be the competent authority for DAC8 reporting. This guide provides practical information for crypto-asset service providers (CASPs) operating in or serving users in Latvia.

Overview

DAC8 brings crypto-asset transactions into the EU's automatic exchange of information framework. CASPs registered or operating in Latvia should prepare to collect relevant data and submit reports to VID. Latvia already participates in CRS and FATCA reporting, providing an established foundation for the exchange of tax information on which DAC8 may build.

Competent Authority

The Valsts ienemumu dienests (VID, State Revenue Service) is the competent authority for tax administration in Latvia, including international information exchange under CRS and FATCA. VID is expected to receive and process DAC8 reports. The Finansu ministrija (Ministry of Finance) oversees tax policy and the transposition of EU directives.

Detail	Information
Authority name	Valsts ienemumu dienests (VID, State Revenue Service)
Parent ministry	Finansu ministrija (Ministry of Finance)
Official gazette	Latvijas Vestnesis
Tax ID format	Personas kods (personal code, 11 digits) / Registration number for entities
Official language	Latvian

Key Requirements

CASPs should be prepared to report the following under DAC8:

• Reportable users: Individuals and entities who are tax resident in EU member states and who conduct reportable crypto-asset transactions through the CASP.
• Transaction types: Crypto-to-fiat exchanges, crypto-to-crypto exchanges, and transfers of reportable crypto-assets are typically within scope.
• Data elements: Full name, address, date of birth, TIN (personas kods for Latvian individuals), transaction gross amounts, number of units, and crypto-asset identification.
• Due diligence: CASPs should implement self-certification collection and TIN validation procedures to identify reportable persons in accordance with DAC8 requirements.

Submission Process

VID has been investing in digital filing systems, and DAC8 submissions are expected to be handled electronically.

• Format: Reports should follow the OECD CARF XML schema as mandated by DAC8. VID may publish additional technical guidance and validation rules for Latvian submissions.
• Language: Official tax administration in Latvia is conducted in Latvian. XML data fields should follow international formats, but correspondence and accompanying documentation should typically be in Latvian.
• Submission channel: VID may integrate DAC8 reporting into its existing Elektroniskas deklareanas sistema (EDS), the electronic declaration system already used for CRS and other tax filings. The exact method is to be confirmed by VID.
• Registration: Reporting entities will need a Latvian tax registration number and access credentials for the EDS system.

Important Dates

• Transposition deadline: December 31, 2025 (directive must be incorporated into Latvian law)
• Data collection begins: January 1, 2026 (reporting entities should start collecting relevant information)
• First reporting period: Calendar year 2026
• First reports due: 2027 (exact date to be confirmed by VID)

Practical Tips

• Register with VID and access EDS: Ensure your entity is registered with the State Revenue Service and has the necessary credentials to use the EDS electronic filing system.
• Monitor Latvijas Vestnesis: All implementing legislation will be published in Latvia's Official Gazette. Check regularly for transposing laws and Cabinet of Ministers regulations.
• Collect personas kods accurately: For Latvian-resident users, ensure your onboarding systems can capture and validate the 11-digit personal code format.
• Prepare Latvian-language capabilities: Your compliance team or local representatives should be able to communicate with VID in Latvian.
• Build on CRS workflows: If you already submit CRS reports through VID's EDS, assess how your existing data collection and submission processes can be extended to cover DAC8.
• Coordinate with FKTK/Latvijas Banka: Following the merger of the Financial and Capital Market Commission (FKTK) into Latvijas Banka (Bank of Latvia), financial services supervision is now handled by Latvijas Banka. MiCA licensing and DAC8 reporting may need to be coordinated.
• Engage local professionals: Consider working with Latvian nodoklu konsultanti (tax consultants) experienced in international reporting frameworks and digital asset taxation.

Important Notice

This guide provides general information about DAC8 reporting in Latvia. Requirements may change as the directive is transposed into national law. The information presented here should not be considered definitive legal or tax advice. Penalties for non-compliance vary by member state and are determined by national legislation. Always consult VID and the Ministry of Finance for the latest official requirements. For specific compliance questions, seek advice from qualified Latvian tax professionals.