From reclaim execution to reclaim enablement
08 Jan 2026
Sarah French of TaxTec speaks with Justin Lawson about the parallels between CRS implementation and the forthcoming FASTER initiative, and what the shift towards digital-first tax relief means for financial intermediaries across Europe
Image: TaxTec
The European Commission proposed the FASTER initiative in 2023. Could you outline what FASTER aims to achieve?
FASTER’s ambition is quite clear — it aims to replace the fragmented, paper-heavy refund procedures we currently navigate with a faster, digital, and more transparent model for cross-border investors obtaining withholding tax relief within the EU. At its core, FASTER introduces two key mechanisms: a harmonised relief-at-source system for eligible investors, and an EU-wide Digital Tax Residency Certificate, or eTRC, to streamline documentation and authentication. If implemented successfully, we could see a significant reduction in the double taxation and administrative delays that make current withholding tax reclaim processes so complex and inefficient.
You have drawn comparisons between FASTER and the Common Reporting Standard. What lessons does CRS offer us as we look towards FASTER’s implementation?
The Common Reporting Standard (CRS) provides an incredibly instructive parallel. While FASTER focuses on tax relief rather than data reporting, its success will depend on the same cross-border cooperation that shaped CRS. CRS was launched in 2014 but only became fully operational after several phased adoption waves between 2017 and 2021. The reasons were clear — varying jurisdictional readiness, data protection and legal alignment issues, and infrastructure and standardisation delays. FASTER will require similar coordination, especially given the technical dependencies between intermediaries, tax authorities, and central securities depositories (CSDs). The lesson is not that progress is slow, but that alignment takes time.
Given your first-hand experience with CRS implementation during your time at Tier 1 institutions, what specific challenges do you anticipate?
The potential for staggered implementation, or different start dates by Member State, is quite high. FASTER’s digital-first design gives it a head start, but we need to be realistic about implementation. Global frameworks, even with broad consensus, face delays due to legislative ratification cycles, differing IT readiness across authorities, data privacy reconciliation, and industry adaptation timelines. While FASTER may begin with a target implementation around 2027–28, achieving full alignment across all EU Member States could take several additional years. That should not be seen as a barrier, but rather as a roadmap for gradual integration, testing, and cooperation.
How does FASTER address the current pain points in withholding tax reclamation?
Today’s withholding tax reclaim processes vary by market and remain heavily dependent on manual documentation, local language forms, and extended refund cycles. FASTER aims to standardise these processes by aligning eligibility rules, digitising investor documentation, and promoting relief at source. This alignment will impact every stage of the current reclaim lifecycle. For investor identification, we move from manual validation of residence and eligibility to eTRC-enabled real-time verification. For documentation handling, we replace paper forms and local formats with a standardised digital format across Member States. For relief versus refund processing, inconsistent procedures between markets give way to a unified relief-at-source and refund framework. Data exchange improves from limited automation to structured, secure electronic data transmission. And for timing and transparency, we shift from months or years for refund visibility to real-time traceability through digital workflows.
What does this mean for the role of reclaim providers like TaxTec?
For providers like us at TaxTec, this marks a shift from reclaim execution to reclaim enablement — integrating with upstream data flows and digital certificates to ensure correct, validated, and timely relief or refund. If FASTER delivers on its goals, we will see relief at source becoming standard, reducing the need for retrospective reclaims. Digital residency validation through eTRC will replace paper-based certification.
End-to-end visibility will improve investor experience and auditability. Data will become centralised, meaning reclaim providers and intermediaries will rely on structured data exchange rather than document uploads. Technology-led processing will be essential, with automation, integration, and validation logic underpinning compliance and speed.
Some might view FASTER as a threat to existing reclaim service providers. How do you see it?
I see it as an opportunity. FASTER directly addresses the same friction points that withholding tax reclaim providers have been solving for years, but on a broader, EU-wide scale. For reclaim specialists and operational tax providers, this is not disruption — it is an opportunity to align solutions with the next generation of frameworks. At TaxTec, we see FASTER as both a challenge and an enabler. It is a challenge because readiness, data alignment, and jurisdictional variation will take time. But it is an enabler because it validates the direction our technology already supports, with automation, transparency, and data-driven reclaim processes.
What should custodians, asset servicers, and fund administrators be doing now to prepare?
The key is not to wait for full implementation but to begin building the infrastructure and processes that will be required. That means investing in technology that can handle structured data exchange, ensuring systems can integrate with digital certificates like the eTRC, and developing the validation logic needed for real-time verification. Organisations should also be mapping out their current processes against what FASTER will require, identifying gaps, and planning for gradual transition. The phased implementation we saw with CRS means there will be time to adapt, but those who begin preparing now will be in a much stronger position.
What is your overall perspective on where this takes the industry?
FASTER represents a pivotal moment in the evolution of cross-border withholding tax relief. Its digital-first design, focus on real-time verification, and push for standardisation align perfectly with the direction tax technology has already been moving. Just as CRS reshaped transparency standards, FASTER will redefine reclaim efficiency. The journey may take time, but the destination — a unified, digital withholding tax framework — is worth pursuing. We are moving towards a future where tax relief is faster, more transparent, and far less administratively burdensome for all parties involved.
That is good news for investors, for intermediaries, and for the efficiency of European capital markets as a whole.
FASTER’s ambition is quite clear — it aims to replace the fragmented, paper-heavy refund procedures we currently navigate with a faster, digital, and more transparent model for cross-border investors obtaining withholding tax relief within the EU. At its core, FASTER introduces two key mechanisms: a harmonised relief-at-source system for eligible investors, and an EU-wide Digital Tax Residency Certificate, or eTRC, to streamline documentation and authentication. If implemented successfully, we could see a significant reduction in the double taxation and administrative delays that make current withholding tax reclaim processes so complex and inefficient.
You have drawn comparisons between FASTER and the Common Reporting Standard. What lessons does CRS offer us as we look towards FASTER’s implementation?
The Common Reporting Standard (CRS) provides an incredibly instructive parallel. While FASTER focuses on tax relief rather than data reporting, its success will depend on the same cross-border cooperation that shaped CRS. CRS was launched in 2014 but only became fully operational after several phased adoption waves between 2017 and 2021. The reasons were clear — varying jurisdictional readiness, data protection and legal alignment issues, and infrastructure and standardisation delays. FASTER will require similar coordination, especially given the technical dependencies between intermediaries, tax authorities, and central securities depositories (CSDs). The lesson is not that progress is slow, but that alignment takes time.
Given your first-hand experience with CRS implementation during your time at Tier 1 institutions, what specific challenges do you anticipate?
The potential for staggered implementation, or different start dates by Member State, is quite high. FASTER’s digital-first design gives it a head start, but we need to be realistic about implementation. Global frameworks, even with broad consensus, face delays due to legislative ratification cycles, differing IT readiness across authorities, data privacy reconciliation, and industry adaptation timelines. While FASTER may begin with a target implementation around 2027–28, achieving full alignment across all EU Member States could take several additional years. That should not be seen as a barrier, but rather as a roadmap for gradual integration, testing, and cooperation.
How does FASTER address the current pain points in withholding tax reclamation?
Today’s withholding tax reclaim processes vary by market and remain heavily dependent on manual documentation, local language forms, and extended refund cycles. FASTER aims to standardise these processes by aligning eligibility rules, digitising investor documentation, and promoting relief at source. This alignment will impact every stage of the current reclaim lifecycle. For investor identification, we move from manual validation of residence and eligibility to eTRC-enabled real-time verification. For documentation handling, we replace paper forms and local formats with a standardised digital format across Member States. For relief versus refund processing, inconsistent procedures between markets give way to a unified relief-at-source and refund framework. Data exchange improves from limited automation to structured, secure electronic data transmission. And for timing and transparency, we shift from months or years for refund visibility to real-time traceability through digital workflows.
What does this mean for the role of reclaim providers like TaxTec?
For providers like us at TaxTec, this marks a shift from reclaim execution to reclaim enablement — integrating with upstream data flows and digital certificates to ensure correct, validated, and timely relief or refund. If FASTER delivers on its goals, we will see relief at source becoming standard, reducing the need for retrospective reclaims. Digital residency validation through eTRC will replace paper-based certification.
End-to-end visibility will improve investor experience and auditability. Data will become centralised, meaning reclaim providers and intermediaries will rely on structured data exchange rather than document uploads. Technology-led processing will be essential, with automation, integration, and validation logic underpinning compliance and speed.
Some might view FASTER as a threat to existing reclaim service providers. How do you see it?
I see it as an opportunity. FASTER directly addresses the same friction points that withholding tax reclaim providers have been solving for years, but on a broader, EU-wide scale. For reclaim specialists and operational tax providers, this is not disruption — it is an opportunity to align solutions with the next generation of frameworks. At TaxTec, we see FASTER as both a challenge and an enabler. It is a challenge because readiness, data alignment, and jurisdictional variation will take time. But it is an enabler because it validates the direction our technology already supports, with automation, transparency, and data-driven reclaim processes.
What should custodians, asset servicers, and fund administrators be doing now to prepare?
The key is not to wait for full implementation but to begin building the infrastructure and processes that will be required. That means investing in technology that can handle structured data exchange, ensuring systems can integrate with digital certificates like the eTRC, and developing the validation logic needed for real-time verification. Organisations should also be mapping out their current processes against what FASTER will require, identifying gaps, and planning for gradual transition. The phased implementation we saw with CRS means there will be time to adapt, but those who begin preparing now will be in a much stronger position.
What is your overall perspective on where this takes the industry?
FASTER represents a pivotal moment in the evolution of cross-border withholding tax relief. Its digital-first design, focus on real-time verification, and push for standardisation align perfectly with the direction tax technology has already been moving. Just as CRS reshaped transparency standards, FASTER will redefine reclaim efficiency. The journey may take time, but the destination — a unified, digital withholding tax framework — is worth pursuing. We are moving towards a future where tax relief is faster, more transparent, and far less administratively burdensome for all parties involved.
That is good news for investors, for intermediaries, and for the efficiency of European capital markets as a whole.
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