DAC7 Approved: New Reporting Obligations For Digital Platforms

On 22 March 2021, the Council of the EU amended the directive on administrative cooperation (through the so-called "DAC7") to expand reporting obligations and exchange of information to cover sales through digital platforms. These rules would apply from 2023.

In addition, DAC7 amends the actual exchange of information and cooperation between EU member states, focusing on joint actions and joint audits. These rules would apply from 2024.

1. New Reporting obligation for digital platforms

Digital platform operators with nexus in the EU will have to identify certain sellers and report information about income realised by their sellers from certain relevant activities. The information must be shared with the tax authorities of the relevant Member States no later than 31 January of the following calendar year, i.e. the reporting deadline for 2023 is on 31 January 2024.