DAC8 Nil Report: When and How to File

A nil report (sometimes called a "zero report" or "no-activity report") is a submission that indicates you are a registered Reporting Crypto-Asset Service Provider (RCASP) but had no reportable transactions or no reportable users during the reporting period. Understanding when and how to file a nil report is important to remain compliant and avoid unnecessary penalties.

> Disclaimer: Nil reporting requirements vary by Member State. Some jurisdictions may not require nil reports at all, while others may mandate them. Always check with your national tax authority for specific requirements in your jurisdiction.

When Is a Nil Report Required?

A nil report may be required in several scenarios. The most common situations include:

Scenario 1: Registered but No Reportable Transactions

You have registered as an RCASP with your national tax authority, but during the reporting period:

• No users conducted reportable exchange transactions (crypto-to-fiat or crypto-to-crypto)
• All transactions fell below any applicable de minimis thresholds (if your jurisdiction has implemented them)
• Your platform was operational but had no trading activity

Scenario 2: Registered but No Reportable Users

Your platform processed transactions, but none of the users involved met the criteria for being a "Reportable User." This might occur if:

• All active users were resident in non-reportable jurisdictions
• All users were entities that fell outside the scope of reporting
• Your user base consists entirely of users who have not yet completed self-certification (though this situation itself may raise compliance concerns)

Scenario 3: Pre-Launch Registration

You registered with the tax authority in anticipation of launching your platform, but the launch was delayed and no activity occurred during the reporting period.

Scenario 4: Platform Wind-Down

Your platform has ceased active operations but remains registered. Until you formally deregister, you may still need to submit reports, including nil reports, for periods with no activity.

When Is a Nil Report Probably Not Required?

In some circumstances, a nil report may not be necessary:

• You are not yet registered as an RCASP. If you have not registered, you typically have no filing obligation. However, if you should have registered, failing to do so does not eliminate your obligations.
• Your jurisdiction explicitly waives nil reporting. Some Member States may state that no submission is needed if there is nothing to report. Check your national guidance.
• You have formally deregistered as an RCASP before the start of the reporting period.

How to Prepare a Nil Report

The format of a nil report generally follows the same XML schema as a standard DAC8 report, but with no user or transaction data. Here is what you typically need to include:

Required Elements

1. MessageSpec (Message Header)

• Sending country code
• Receiving country code
• Message type (typically "DAC8" or as defined by your schema)
• Reporting period (the calendar year being reported on)
• Message reference ID (a unique identifier for this submission)
• Timestamp of report generation

1. ReportingBody (Your Entity Information)

• Legal name of the RCASP
• Registration number or entity identifier
• Address
• Jurisdiction of registration
• Any additional identifiers required by your national schema

1. No User or Transaction Blocks

• The report should contain zero ReportableUser elements
• The report should contain zero TransactionRecord elements
• Some schemas may require an explicit nil indicator element or attribute

Example Structure (Conceptual)

The following is a simplified conceptual representation. Your actual XML must conform to the official schema provided by your tax authority.

MessageSpec
  - SendingCountry: [Your country code]
  - ReceivingCountry: [Tax authority country code]
  - MessageType: DAC8
  - ReportingPeriod: 2026
  - MessageRefId: [Unique reference]
  - Timestamp: [Generation timestamp]

ReportingBody
  - Name: [Your entity name]
  - IN: [Your registration number]
  - Address: [Your registered address]

[No ReportableUser elements]
[No TransactionRecord elements]

Submission Process for Nil Reports

The submission process for a nil report generally follows the same steps as a regular report:

1. Generate the nil report XML conforming to the official schema
2. Validate the XML against the XSD to ensure structural correctness
3. Submit through the designated channel (portal, SFTP, API, or other method specified by your tax authority)
4. Receive and store the acknowledgement from the tax authority
5. Archive the submitted file along with the acknowledgement for your records

Timeline

Nil reports should typically be submitted by the same deadline as regular reports. Do not assume that a nil report can be filed later simply because it contains no data. The filing deadline generally applies regardless of whether you have reportable activity.

Common Mistakes with Nil Reports

Mistake 1: Not Filing at All

The most common error is assuming that no reportable activity means no filing obligation. If your jurisdiction requires nil reports, failing to file may be treated as a missed submission, potentially resulting in penalties or compliance follow-up.

Mistake 2: Filing an Incorrect Nil Report

Some providers accidentally submit a nil report when they actually have reportable data. This can happen when:

• Transaction categorization excludes reportable transactions by mistake
• Users who should be reportable are incorrectly flagged as non-reportable
• System errors cause the data extraction to return no results

Always verify that a nil report is genuinely appropriate before submitting one. Cross-check against your platform's transaction records and user database.

Mistake 3: Using the Wrong Message Type

If your schema distinguishes between a "new" report and a "nil" report through a specific message type indicator or flag, ensure you use the correct one. Submitting a standard "new" report with no data may be treated differently from a properly flagged nil report.

Mistake 4: Missing the Deadline

Because nil reports may feel less urgent (there is no data to compile), they sometimes get deprioritized. Treat the nil report deadline with the same importance as a regular report deadline.

Mistake 5: Not Retaining Records

Even though a nil report contains no user data, you should still retain:

• A copy of the submitted XML file
• The submission acknowledgement from the tax authority
• Documentation supporting why a nil report was appropriate (e.g., evidence that no reportable transactions occurred)

This documentation may be needed if the tax authority later queries why a nil report was filed.

Transitioning from Nil to Active Reporting

If your platform begins processing reportable transactions after previously filing nil reports, be prepared to:

• Update your data collection systems to capture all required user and transaction information
• Ensure self-certification forms are in place for new and existing users
• File a standard report for the next reporting period that includes all reportable activity

The transition from nil to active reporting should not require re-registration in most cases, but you should confirm this with your national tax authority.

Checklist for Nil Report Filing

• [ ] Confirmed that your jurisdiction requires nil reports
• [ ] Verified that no reportable transactions occurred during the period
• [ ] Verified that no reportable users exist for the period
• [ ] Generated the nil report XML with correct header and entity information
• [ ] Validated the XML against the official schema
• [ ] Submitted before the filing deadline
• [ ] Received and archived the submission acknowledgement
• [ ] Documented the rationale for filing a nil report

Summary

Filing a nil report is typically a straightforward process, but it requires the same attention to deadlines and format compliance as a full report. The key steps are: confirm your nil reporting obligation with your national tax authority, generate a valid XML file with your entity details but no user or transaction data, validate it against the schema, and submit it before the deadline. Keep records of everything.

This article is for informational purposes only and does not constitute legal or tax advice. Check with your national tax authority for specific nil reporting requirements in your jurisdiction.