- The European Parliament voted, with an overwhelming majority, in favor of a file to use blockchain technology to modernize taxation processes in the European Union.
- The file also calls on streamlining rules on taxing crypto-assets.
The resolution tries to identify what makes a taxable event, and suggests that the conversion from crypto to fiat currency is the most viable option. The European Commission is yet to clearly define this and other possible taxable events, and is considering the borderless nature of crypto-assets.
Additionally, the exchange of taxpayer information by cross-national tax administration will need to include information on crypto-assets. However, the policy also calls for a “simplified tax treatment” for smaller transactions.
Blockchain technology is also pushed forward as an instrument for tax collection, identifying the technology’s potential to “automate tax collection, limit corruption and better identify ownership of tangible and intangible assets allowing for better taxing mobile taxpayers,” according to the European Parliament’s release.
The Commission is called upon to implement blockchain technology into taxation programs. It also encourages EU member states to reform their taxation authorities.
The file passed in the Parliament’s plenary session with an overwhelming majority of 566 votes in favor, 7 votes against and 47 abstentions. Leading the report is MEP Lídia Pereira, member of the center-right European People’s Party in the Parliament.