Adoption of DAC7

And whilst DAC8 is in progress...DAC7 has been adopted!

On 22 March 2021, the Council of the European Union adopted new rules revising the Directive on administrative cooperation in the field of taxation to extend the European Union (EU) tax transparency rules reporting by digital platforms on their sellers.

The new rules introduce a reporting obligation for digital platforms located both inside and outside the EU and an automatic exchange of information between Member States’ tax administrations on revenues generated by sellers on these platforms as of 1 January 2023.

DAC7 is also perceived to reduce the administrative burden placed on platforms, who have to deal with several, different national reporting requirements.

Member States will have until 31 January 2022 to transpose the amendments into national law. The new provisions will apply as of 1 January 2023 and the first reporting of data will be required by 31 January 2024.