DAC7 Digital Platform Reporting: the deadline is almost here

The first reporting deadline under the reporting regime for digital platforms (DAC7) is fast approaching.

If your operations include a digital platform, such as a website or mobile application, that connects third-party sellers with buyers, you might be in scope of the EU Directive 2021/514 (DAC7) and should act urgently in order to avoid fines. Tax authority guidance has clarified that the scope of this framework is broad and not limited to a specific sector.

According to this framework, you will be in scope if you:

• Operate a digital platform (website or mobile application);
• Facilitate the conclusion of an agreement between two distinct parties via that platform, regardless of involvement in the transaction payment;
• Facilitate transactions related to the sale of goods, personal services, rental of transportation modes or immovable property.
   

Entities falling within the scope must collect information about sellers and their activities and report this information to the tax authorities. According to the tax authority guidance, entities in scope must maintain records of all relevant steps and information used in this regard. The tax authorities have recently published their submission guidelines.

Compliance with this framework has become urgent, as seller information must be collected and verified by 31 December 2023 (extension may apply) and reported to the authorities by 31 January 2024.

In addition, the legislator has proposed new investigative measures for the tax authorities to organize audits on the fulfillment of these obligations.

If your activities meet the aforementioned criteria, your business may fall under the scope of DAC7. Our experienced team of experts can assist you in all aspects of DAC7 reporting. We can assist you with an impact assessment or review thereof, design of your operating and reporting model as well as with the reporting towards the tax administration, supported by the tools we have developed.