Handling Users with Multiple Tax Residencies in DAC8

Category: Troubleshooting Last Updated: 2026-02-12

---

Overview

Under DAC8, Reporting Crypto-Asset Service Providers (RCASPs) must report user information and transaction data to the tax authorities of the jurisdictions where Reportable Users are tax resident. When a user is tax resident in more than one jurisdiction (dual or multi-residency), the reporting process becomes more complex. This article explains how multi-residency situations arise, what reporting obligations apply, and how to avoid common pitfalls such as double reporting.

---

Problem: A User Declares Tax Residence in Multiple Jurisdictions

Cause

Dual or multiple tax residency is a legitimate and relatively common situation. It can arise when:

• A user has permanent homes in two countries.
• A user has relocated during the year but retains tax obligations in both the origin and destination countries.
• A user is a citizen of a country that taxes based on citizenship (e.g., the United States) while also residing in another country.
• Domestic tax laws of two countries each consider the user to be a tax resident under their respective criteria.

Under DAC8 due diligence procedures, the self-certification should capture all jurisdictions of tax residence. If a user indicates more than one jurisdiction, the RCASP must handle this in the report.

---

Which Jurisdictions to Report To

General Rule

When a user is tax resident in multiple jurisdictions, the RCASP is generally required to report the user's information and transactions to each jurisdiction of tax residence. This means:

• If a user self-certifies as tax resident in both Germany and France, the RCASP should include that user's data in the reports sent to both the German and French tax authorities.
• Each report should list all of the user's jurisdictions of tax residence and the corresponding TINs.

Reporting to Your Own Member State

If the RCASP is established in one of the user's jurisdictions of tax residence, the RCASP will report to its own Member State's tax authority. That authority is then responsible for exchanging the information with the other relevant jurisdictions through the AEOI framework. The RCASP should check whether it is also required to report directly to the other jurisdiction(s) or whether the exchange happens automatically between tax authorities.

Non-EU Jurisdictions

If one of the user's jurisdictions of tax residence is outside the EU, the applicability of DAC8 reporting depends on the information exchange agreements in place. DAC8 covers exchange within the EU. Reporting to non-EU jurisdictions may be governed by separate frameworks (such as CRS or bilateral agreements). Verify the specific obligations with your national tax authority.

---

Problem: Risk of Double Reporting

Cause

Double reporting occurs when the same transaction data is reported multiple times for the same user, either:

• Within a single report (duplicate records for the same user with different jurisdiction codes).
• Across multiple reports to different jurisdictions (the same transaction is counted multiple times in the aggregate data sent to each jurisdiction).

Fix

1. Report to each jurisdiction, but do not duplicate the amounts. The user's full transaction data should be available to each relevant tax authority. This is not double reporting in the problematic sense; it is the intended operation of the system. Each tax authority receives the data it needs to assess the user's tax obligations in its jurisdiction.

1. Avoid creating separate user records for each jurisdiction. A multi-resident user should typically appear as a single Reportable User entry with multiple TaxResidency elements (or the equivalent structure in the schema), not as multiple separate entries for the same person.

1. Verify the schema structure. The DAC8 XML schema should provide a mechanism for listing multiple jurisdictions and TINs under a single Reportable User. Confirm how your schema version handles this and ensure your report generation logic uses the correct structure.

1. Reconcile across reports. If you generate separate report files for different jurisdictions, verify that the same user's data is consistent across all files. The transaction amounts and details should be identical; only the target jurisdiction differs.

---

Problem: Conflicting Self-Certification and Indicia

Cause

Occasionally, a user's self-certification may indicate one jurisdiction of tax residence while other indicia (such as address, phone number, or identity document) suggest a different or additional jurisdiction.

Fix

1. Follow the due diligence procedures. DAC8 specifies how to resolve conflicts between self-certification and indicia. Generally, a self-certification is the primary source of truth, but the RCASP must evaluate its reasonableness in light of other available information.
2. Request clarification from the user. If indicia suggest an additional or different jurisdiction, contact the user to confirm or update their self-certification.
3. Report based on the best available information. If the conflict cannot be resolved, consider reporting to all jurisdictions indicated by both the self-certification and the conflicting indicia, and document the discrepancy in your internal records.
4. Consult national guidance. Some Member States may have specific rules for resolving self-certification conflicts. Check the applicable guidance.

---

Problem: User Changes Tax Residence During the Reporting Period

Cause

A user who relocates from one country to another during the year may be tax resident in the first country for part of the year and in the second country for the remainder.

Fix

1. Update the self-certification. Request an updated self-certification reflecting the change in tax residence.
2. Determine the reporting split. Depending on the jurisdiction's rules, you may need to report the user's transactions to each jurisdiction for the portion of the year during which they were tax resident there, or you may report to both jurisdictions for the full year. The applicable rules vary, so consult national guidance.
3. Document the timeline. Record the date of the tax residence change and the basis for the determination (e.g., updated self-certification, notification from the user).

---

Practical Tips

• Collect all jurisdictions at onboarding. Ensure your self-certification form explicitly asks whether the user is tax resident in more than one jurisdiction and provides fields for multiple jurisdictions and TINs.
• Request TINs for each jurisdiction. Multi-resident users should provide a TIN for each jurisdiction of tax residence. If a jurisdiction does not issue TINs, document this.
• Keep self-certifications current. Implement a process for periodic renewal of self-certifications (for example, every three years or upon detecting a change in circumstances).

---

Disclaimer

This article provides general guidance on handling multiple tax residencies under DAC8. The specific rules for multi-residency reporting, conflict resolution, and information exchange vary by EU Member State and may be influenced by bilateral tax treaties. Always consult the relevant national tax authority's guidance and, where appropriate, seek professional legal or tax advice.