The digitalization of the economy and the rise of digital platforms has affected many business sectors. These developments have also led to a shift from traditional employment relationships based on employment contracts to the provision of services on a self-employed basis. There is thus a risk that the income sellers realize via digital platforms is not fully reported.
As of January 1, 2023 platform operators are subject to a reporting obligation to provide information about the users of their platforms (‘sellers’) to the Dutch Tax and Customs Administration. This reporting obligation stems from the EU DAC7 Directive. The DAC7 directive was developed from the need of tax authorities to better understand the income that sellers generate via these platforms. DAC7 is a uniform reporting obligation, which ensures that the information collected is also exchanged among tax authorities within the EU and eventually also with non-EU countries with a comparable reporting obligation.
Complying with this new reporting obligation raises many questions. Do the activities of your platform fall under the scope of the new rules? How does this impact your organization? Which transactions and sellers do you have to report on and what requirements must you then meet if you are a platform operator? To what extent is all the reportable data available? Is additional information about the sellers needed in order to comply with the reporting obligation? How should the verification of data be organized? Which checks have to be introduced?
These are just a few examples of questions that may arise in terms of DAC7. The tax advisors of KPMG Meijburg & Co would be pleased to use their experience and expertise to help you with any DAC7 issues. Feel free to contact us if you’d like to know how the new rules will impact your organization.