Lithuania's Tax Authority Updates Cryptocurrency Asset Reporting Procedures
The Lithuanian National Tax Inspectorate issued Order No. VA-63, updating the reporting procedures for cryptocurrency users to align with the EU DAC8 and OECD CARF frameworks.
This order revises the framework of Order No. VA-119 issued on December 10, 2025, requiring CASPs and local cryptocurrency operators to enhance customer due diligence, collect and report user identity information, transaction records, account balances, customer identification numbers, and tax residency status.
Entities that have completed registration and reporting obligations in other EU member states are exempt from re-reporting in Lithuania and must submit a notification of exemption to the VMI by May 31 of the year following their status as data providers.
The first reporting will cover data for the calendar year 2026 and must be submitted through the taxpayer registration and tax management information system by May 31, 2027. Relevant data will be automatically exchanged among tax authorities in EU countries starting mid-2027.
The rules clarify that existing cryptocurrency users are defined as individuals or entities that established a relationship with service providers before December 31, 2025, and refine the scope of reportable persons and users, covering EU and some non-EU residents.
In terms of market mechanisms, compliant CASPs must upgrade onboarding processes and backend systems to collect and report data. The costs of compliance and technical upgrades will be borne by service providers, while unreported entities will face regulatory pressure. Those who have reported in other member states will benefit from exemptions, overall promoting the flow of funds and transaction information to tax authorities.
The new regulations do not change the capital gains tax rate on virtual assets in Lithuania, but as of March 2, some electronic currency token transactions will require additional service authorization fees.
Source: Public Information
ABAB AI Insight
The Lithuanian VMI previously established the basic framework for cryptocurrency user data reporting through Order No. VA-119. This latest Order No. VA-63 further refines definitions, registration deadlines, and exemption procedures, continuing its path of localizing DAC8 and advancing CARF standards in sync with other EU member states.
By mandating CASPs to collect identity, balance, and transaction data and report it centrally, the tax authority shifts compliance resource and system upgrade costs to service providers. The motivation is to achieve cross-border automatic information exchange, similar to FATCA's reporting requirements for financial institutions, prioritizing high liquidity digital asset holders.
This is akin to the EU's CRS automatic exchange for bank accounts or the US's FATCA reporting for foreign accounts, currently transitioning from pilot reporting to mandatory data sharing across the EU, with service providers shifting from free operation to controlled data pipelines.
Essentially, this represents regulatory change and information centralization: by standardizing reporting requirements and exemption mechanisms, previously dispersed cryptocurrency transaction data is integrated into a cross-border tax network. The mechanism allows a single registration to cover obligations in multiple countries, reducing duplication costs while enhancing tax evasion detection capabilities, forcing fund flows to pass through traceable nodes.
ABAB News · Cognitive Law
Transparency first locks platforms, then pursues individuals
Exemption is the exception, reporting is the default
Cross-border funds = cross-border data exchange