ECOFIN reaches agreement on DAC 7

The amendments to the Directive 2011/16/EU on “Administrative Cooperation in the field of Taxation” (“DAC”) are following each other up in quick succession. Recently, an agreement has been reached on the “DAC 7” proposal, which will introduce, amongst other, reporting obligations for digital platform operators and the automatic exchange of the reported information between Member States. This newsflash provides an update on this matter.   

On 15 July 2020, the European Commission (‘EC’) adopted a new tax package on fair and simple taxation. This package included a proposal to amend the DAC for the 6th time (hence: DAC 7). A modified version of this DAC 7 proposal was published by the Council on 25 November. On 1 December 2020, an agreement was reached on the revised proposal at an ECOFIN meeting. Several procedural formalities will take place in the upcoming weeks, before the EU Council will formally adopt the proposal. 

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