DAC7: New tax transparency rules on digital platforms – is your company at risk?
In March 2021, the EU approved new reporting rules in a directive known as DAC7. The directive will require the operators of online platforms for the sale of goods and certain services, to collect, verify and share data on their sellers and their transactions concluded on the online platform. EU member states have until 31 December 2022 to implement DAC7 into national law. Certain platform operators will become a reporting platform and will need to start collecting and verifying data points in compliance with the DAC7 reporting requirements. The collected data points must be reported to the tax authorities of the relevant EU member state annually.
At the moment, the definition of “reporting platform” is broad. There is a lot of uncertainty as DAC7 aims to cover a wide range of activities.
Will you be considered a platform operator with reporting obligations when DAC7 comes into play, and are the sellers selling on your platform qualified sellers?
We have created a short interactive tool, our DAC7 risk test, to help you determine whether your business is at risk of falling within the scope of DAC7. To discuss the implications of DAC7 further, you can arrange a call back through the tool, or get in touch with your usual Baker McKenzie contact.
Access code: DAC7test
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