Does Revolut report to tax authorities? CRS reporting

What is CRS Reporting?

The Common Reporting Standard (CRS) is a system created by governments worldwide to help fight tax evasion (prevent people from hiding money in foreign accounts to avoid paying taxes). Simply put, it requires banks and financial institutions (like Revolut) to share information about their customers’ accounts with tax authorities on an annual basis.

Here’s how it works:

• Revolut collects your information: When you open an account, you must provide your name, address, and tax ID. It also collects your year-end account balance (December 31st), gross proceeds from all sales, interest income, dividend income, and other income;
• Information is shared with the Lithuanian tax authorities: Once a year, Revolut sends your account information to the Lithuanian tax authority (until the 30th of June of each year);
• The Lithuanian tax authorities share the information globally: The information is shared with the country where you live or are considered a tax resident.
  Please note you don’t need to take any action yourself since everything is handled by Revolut (and the tax authorities).

Does Revolut participate in CRS reporting?

Yes, it must participate in the CRS Reporting since it operates through Lithuania, a country which adheres to the CRS reporting. So, all of Revolut’s subsidiaries are subject to it, namely: “Revolut Bank UAB” and “Revolut Securities Europe UAB”.

“Revolut Ltd”, registered in England and Wales, is also part of the CRS rules as required by the United Kingdom rules.

Their website includes a section called “FATCA/CRS declaration”:

What information does Revolut report?

Revolut does not “choose” what information to share. According to CRS regulations, it must provide:

• Account number;
• Name;
• Full address;
• Date of birth;
• Tax ID Number;
• Tax residency country;
• Year-end account balance;
• Gross proceeds from all sales, interest income, dividend income, and other income.

Where can I get my CRS in Revolut?

You cannot get access to the CRS in Revolut. We contacted customer support to be 100% sure and their response confirmed it:

“I’m sorry for the confusion, but individual access to CRS reports is not provided by Revolut. These reports are automatically exchanged between jurisdictions and are not typically shared with individual customers”.

Still, there are other platforms like Interactive Brokers that allow you to access your CRS:

Which countries are affected?

Over 100 countries are involved in cooperating for higher transparency standards, including all European Union (EU) countries, China, India, and Hong Kong.

The United States is a notable exception. It is not included in the CRS ecosystem. Instead, it actively controls its citizens’ foreign financial assets through the Foreign Account Tax Compliance Act (FATCA), which requires that foreign financial Institutions report on the foreign assets held by their U.S. account holders.

Since Revolut only operates in countries under the CRS, except the US, you are automatically involved with this legislation.

How to file your Revolut taxes

Every year, you need to declare any earnings of the previous year. Your investments in different types of assets (savings, shares, ETFs, cryptos, etc.) may generate income or capital gains and losses, particularly if you receive dividends or sell a share at a higher price than you bought it for.

Revolut provides an annual tax report that helps you complete your tax return, but you must manually insert any transactions into your government tax system. What if you have multiple transactions? Declaring each one may take hours! One solution is Tax Wizard, a platform where you only need to submit your Revolut annual tax report, and it automatically creates a file with all of your transactions. Then, you can export it to fulfil your tax obligations.

How CRS reporting differs from FATCA (for US users)

We have detailed a comparison side by side to help you understand the differences:

How does CRS reporting affect Revolut Business accounts?

CRS reporting applies not only to personal (individual) accounts but also to business accounts held with Revolut. Financial institutions like Revolut must report information on business accounts when the account holders or controlling persons (like company owners) are tax residents of countries participating in CRS.

Here’s how CRS reporting affects Revolut business accounts:

• Collection of business information: Revolut collects relevant information when a business account is opened. This includes details of the business, its country of incorporation, and the tax residency of the business and its owners.
• Reporting requirements: Revolut is required to share information about business accounts with tax authorities in the same way it does for personal accounts. This includes data such as:
  1. Business name and identification details
  2. Account balances
  3. Transaction history
  4. Tax residency of the business and its controlling persons (owners, shareholders, etc.)
  5. Impact on global businesses: If a business operates internationally or has owners in different countries, the tax residency of the business and its controlling persons will determine where and how the information is reported under CRS.

• Impact on global businesses: If a business operates internationally or has owners in different countries, the tax residency of the business and its controlling persons will determine where and how the information is reported under CRS.

Bottom line

All in all, Revolut does report to tax authorities under the Common Reporting Standard (CRS). This applies to both personal and business accounts held by users who are tax residents of participating countries.

CRS reporting ensures that financial institutions like Revolut share relevant account information with local tax authorities, helping to prevent tax evasion.

Do you have any questions? Feel free to reach out to us!