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 introduces, 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 and the ECOFIN reached an agreement on the revised proposal in December 2020.
Update: On March 22, 2021, the EU Council approved the DAC 7, which expands 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.
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