The cryptocurrency market in Poland still has a lot to settle – both in terms of the basics of functioning and tax. In 2021 a virtual currency business register was created, which brings together traders of different types of virtual currency.
It is worth mentioning that at this moment the profit from replacing one cryptocurrency with another is not taxed. This is different when we sell a virtual currency for common means of payment – in such a case, when we make a profit, the tax on the currency is due to the tax of 19%.
However, legislators from all EU countries are actively working towards complementing the regulation of the trading of virtual currencies. The result is a party. 13 September 2023 Eighth Iteration of the Administrative Cooperation Directive, known as the DAC8.
This Directive focuses in particular on providing tax authorities with adequate tools to track and assess all transactions related to virtual currencies. Each Member State will have until 31 December 2025 to introduce the provisions of the Directive, it will fully apply from 1 January 2026
The main objective of the new regulation is to combat tax avoidance and money laundering. Therefore, tax authorities are to be equipped with tools to verify all transactions related to virtual currencies. Unfortunately, such equipment will be linked to the loss of privacy in such transactions.
Although decentralized protocols (DeFi) and direct exchanges between users will still be able to function at the moment. However, if any kind of service provider appears in the transaction, it will be obliged to report such transaction automatically to tax authorities.