As from 1 January 2023, the publication of Council Directive (EU) 2021/514 of 22 March 2021 (‘DAC7’) changes existing provisions on exchange of information and administrative cooperation.
DAC7 introduces due diligence and reporting requirements for both EU and non-EU platform operators, further to which certain factual and financial information of its users is required to be shared with the tax authorities in Europe.
It also extends the scope to the automatic exchange of information with respect to information to be reported by the digital platform operators.
The reporting of income earned through the use of digital platforms in performing commercial activities should provide tax authorities with comprehensive data to correctly assess Direct Tax and Indirect Tax due across the EU Member States. DAC7 must be implemented by all EU member states by 31 December 2022. On January 31, 2024 digital platforms must report for the first time for the year 2023.
Request our fact sheet including a ‘quick reference card’ for an initial and preliminary (high-level) DAC7 assessment here.