In an effort to suppress tax fraud in online sales the EU adopted EU Directive 2011/16/EU to improve administrative cooperation in the field of taxation between EU countries (So called DAC7).
The directive directs platform operators to collect information about the sellers on the platform and the sales generated from it and to report it to the responsible authority. At the same time, the individual EU member states are requested to exchange information automatically. EU member states should implement the DAC7 directive into national legislation until January 1st, 2023.
Implementation of DAC7 into national legislation of EU countries
Public
Author: Kristina Dosen
Category:
Fiscal subject related
General information
Views:
552
Content accuracy validation date:
23.08.2022
Content accuracy validation time:
09:10h
Content
In principle, all operators of digital platforms are affected if the platform allows sellers to contact potential buyers and carry out so-called relevant activities. This includes in particular the rental of real estate, the rental of any means of transport (e.g. ridesharing), the provision of personal services and the sale of goods. Online portals that only enable the processing of payments, the listing or forwarding of users or the placement of advertising are not affected by the reporting obligation.
Reportable information includes, but is not limited to, the seller's name, address, and tax identification number and, under certain conditions, the owner and a financial account identifier. In addition, the platform operators must report the sales and activities achieved by each seller for each calendar quarter. Any fees, commissions or taxes withheld or charged by the platform operator must be stated separately. In addition, the platform operators are obliged to regularly check the information collected for accuracy and plausibility.
Platform operators must submit the first report on January 31, 2024. Transactions that take place after January 1, 2023, must be reported. Platform operators should therefore deal with the new regulations immediately. Processes must be implemented in order to be able to collect, verify and archive the reportable data in a legally compliant manner from January 1, 2023. Data protection is a particular challenge here.