2023-01-18-KPMG_s_EU_Tax_Centre-Euro_Tax_Flash_from_KPMG_s_EU_Tax_Centre_10页_336kb

Background and Purpose:

• DAC7 (Council Directive 2021/514) requires platform operators to report sellers' income via platforms, enhancing tax transparency and enabling automatic information exchange among EU tax authorities. Modeled after OECD Model Rules, it aims to address revenue reporting from digital services, starting from January 1, 2023, after Member States concluded transposition by December 31, 2022.

Key Provocations and Obligations:

• Platform operators must report on rental income, personal services, goods sales, and transportation services where consideration is known or reasonably knowable.
• Includes collecting and verifying seller data, reporting annu d data annually by January 31 of the following year.
• Data exchanged automatically through the EU common communication network using XML.
• Penalties for non-compliance range from fines to criminal charges, based on severity, but must be effective, proportionate, and dissuasive, as specified in national laws.

Implementation in EU Member States:

• As of the report, 17 countries (e.g., Austria by January 1, 2023; Croatia, Czech Republic, and others primarily in 2022) had finalized transposition, including penalties and procedures; Finland requires nil reports and caps sanctions at €15,000. Other countries are in various stages of implementation.

ETC Comment and Advice:

• Platform operators, whether EU or non-EU, should determine if their activities fall under DAC7, monitor national variations in implementation and deadlines, and focus on data management for reporting and verification. Careful selection of reporting locations is advised for multi-jurisdictional operators. Contact KPMG for further assistance.