Bulgaria Finally Transposes EU DAC8: Crypto Firms Must Report Customer Transactions to Tax Authority

Bulgarian parliament approves DAC8 transposition with 149 votes, none against

Bulgaria’s National Assembly has given final approval to amendments requiring crypto asset service providers to report detailed customer and transaction data to the country’s tax authority, completing the national implementation of the European Union’s DAC8 reporting framework more than eight months after the official transposition deadline.

The changes to the Tax and Social Security Procedure Code passed their second and final reading on Sept. 9 with 149 lawmakers voting in favor, none against and ten abstentions in the 240-seat chamber, according to a report from crypto.news. The legislation was introduced by the Cabinet and transposes two European directives into Bulgarian law, allowing tax authorities across EU member states and participating jurisdictions to exchange information about people conducting crypto transactions.

What crypto firms operating in Bulgaria must now report

Under the new rules, companies providing crypto asset services in Bulgaria must register with the National Revenue Agency and submit structured information about their users. For each reportable customer, providers are required to collect identifying details including the person’s full name, address, date and place of birth, tax identification number and jurisdiction of tax residence.

The obligations extend well beyond identity checks. Providers must disclose information covering each type of digital asset for which they have processed transactions, transfers or exchanges on behalf of users. Transaction records need to include total gross amounts, the number of units traded and the number of purchases or sales made against fiat currencies. Crypto-to-crypto transactions fall within the reporting scope as well, meaning swaps between two digital assets are captured alongside conventional on-ramp and off-ramp activity.

Withdrawals from reporting providers to external addresses can also fall within the framework, which means transactions involving self-custody wallets may appear in information submitted by crypto companies. The rules do not require providers to continuously report activity conducted entirely within self-custody, preserving at least a formal boundary around unhosted wallet usage.

Late arrival: eight months past the EU deadline

The measures form part of the EU’s implementation of the Directive on Administrative Cooperation, known as DAC8, which expanded tax information reporting to crypto assets. EU member states were required to transpose the framework into national law by Dec. 31, 2025, with the rules applying from Jan. 1, 2026. Bulgaria’s final parliamentary approval therefore arrives well after most peers completed the required national legislation.

DAC8 requires crypto asset service providers to collect customer identities, tax identification numbers and transaction records that can later be exchanged between national tax authorities. Providers across the bloc began collecting reportable information from Jan. 1, with the first full-year reports due in 2027.

Existing individual customers generally have until Jan. 1, 2027, to provide valid tax-residency self-certification information under the European framework. Customers who fail to supply the required details can face account restrictions after providers issue two reminders and allow a 60-day cure period. National authorities retain responsibility for enforcement procedures and penalties under their domestic systems.

Cross-border data flows are the real objective

The information collected under the reporting system is designed to move between tax authorities when customers reside in different participating jurisdictions. The European Commission has framed the framework as a response to tax evasion and avoidance involving crypto assets, where the cross-border nature of transactions can make it harder for national authorities to identify taxable activity.

A recent analysis of France showed how the system is expected to operate once the first reporting cycle is completed. Reporting providers are collecting transaction information throughout 2026, while EU authorities are expected to begin exchanging data covering that year by Sept. 30, 2027. Customer information can include names, addresses, dates of birth, tax identification numbers and tax residences, while transaction reporting covers aggregated values and transaction counts for exchanges, transfers and certain payments.

CARF extends the model beyond Europe

The European system operates alongside the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, or CARF, which is designed to facilitate similar exchanges between participating jurisdictions outside the EU. Data collection began in 48 jurisdictions at the start of 2026, with most early participants expected to begin exchanging information in 2027. Other jurisdictions are scheduled to join during subsequent reporting cycles.

The international framework primarily relies on crypto intermediaries such as centralized exchanges rather than blockchain analytics, placing the compliance burden on the same firms already navigating the EU’s Markets in Crypto-Assets regime. For Bulgarian crypto businesses, the practical effect is a doubling of paperwork obligations that were largely already informally practiced: the difference is that the National Revenue Agency will now receive structured, standardized data it can forward to tax authorities across the continent.

For retail users in Bulgaria and across the EU, the era of quiet cross-border crypto gains is effectively over. Every purchase, sale, transfer and swap processed by a reporting provider from 2026 onward will surface in the first inter-authority data exchange expected in the autumn of 2027, and Bulgaria’s late transposition does not exempt transactions conducted during the interim months.