During the past week, many Swedish Revolut users have received push notifications and messages in the app where Revolut invites users to update their tax information. In forums and threads about Revolut, there is currently a lot of confusion among users, especially since the information has already been provided in connection with the registration.
Update 2023:
Since July 1, 2022, all Revolut users have been transferred from Revolut Payments UAB to Revolut Bank UAB. This means that Revolut is now a bank, which must comply with the same obligations as other banks, including reporting to tax authorities. This will continue to apply in 2023.
Obliged to disclose information
According to Revolut, as a financial institution (now a bank) you are obliged to disclose information about your customers to tax authorities in Europe. In its communication, the company says that it is aware that it creates discomfort for users, but that Revolut is committed to this by law. Users are now prompted to open the app and fill in the missing tax information. Many are concerned that their data and information will be sent to tax authorities and other institutions in banking and finance (something already done under current regulation). The tax information collected is under the CRS (Common Reporting Standard), where the purpose is to report the users’ income in accordance with the OECD cooperation with tax authorities.
Customer information stays for eight years
Revolut will not share the information on its own. Since Revolut has a Lithuanian banking license, it is the Lithuanian tax authority that collects information about the users and reports on to other national tax authorities in the EU, including the Tax Agency. Information may also be provided at the request of local tax authorities in the countries where the users reside. For those users who close their account with Revolut, the customer information remains for eight years. If you do not want to be part of Revolut’s new business concept as a bank, you can close your account directly in the app. The verification of tax information takes a few minutes and users do not need to worry if you have nothing to hide from the tax authorities. It is still unclear how Revolut will act towards customers who do not fill in the tax information.
A professional writer by day, a tech-nerd by night, with a love for all things money.