Extention of the DAC7 reporting obligation in Germany

The German Federal Central Tax Office (BZSt) has implemented temporary measures in relation to the yearly reporting requirements linked to the recently enacted regulations governing the exchange of information on income generated by sellers through digital platforms, commonly referred to as DAC7. Designed to tackle issues arising from digital platform usage, DAC7 imposes a mandate on operators to report the earnings of sellers on their platforms. Simultaneously, EU Member States are obligated to facilitate the automatic exchange of this information.

While the new rules generally come into effect on January 1, 2023, with reporting due by January 31 of the subsequent year, Germany has instituted transitional provisions extending the deadline to March 31, 2024 (prior to April 1, 2024). This extension specifically applies to the reporting period corresponding to the calendar year 2023.

Reminder: DAC7, or the seventh directive amending the Directive on Administrative Cooperation in the field of taxation, addresses challenges related to digital platforms. It mandates digital platform operators to report sellers' income on their platforms, facilitating the automatic exchange of this information among EU Member States.