European Commission issues letters of formal notice to 14 states that have not notified or only partially notified their transposition of DAC7.
The countries are: Belgium; Estonia; Greece; Spain; Croatia; Italy-Cyprus; Latvia; Lithuania; Luxembourg; Poland; Portugal; Romania; Slovenia.
Jan 2023 EC launches consultation on sharing data with non-EU jurisdictions. Follows member states adoption harmonised tax data requests for marketplaces; efficient exchange of data between tax authorities – first reports due 2024 for transactions in 2023
As EU member states complete their adoption of coordinated tax data requests from digital marketplaces.
The latest DAC7 implementation statuses for the 27 EU member states:
- Austria approved in July
- Belgium gazetted Dec 2022
- Bulgaria Dec 2022 law issued
- Croatia gazettes legislation Dec 2022
- Cyprus OUTSTANDING no draft legislation yet
- Czech gazetted Dec 2022
- Denmark implemented new rules Sep 2022
- Estonia OUTSTANDING govt approves draft bill Oct 2022
- Finland draft in Parliament Oct 2022
- France gazetted Dec 2022
- Germany gazetted Dec 2022
- Greece OUTSTANDING no draft legislation yet
- Hungary gazetted Nov 2022
- Ireland (2021 Finance Bill) accepted
- Italy gazetted Dec 2022
- Latvia gazetted Jan 2023
- Lithuania gazetted Dec 2022
- Luxembourg Outstanding Bill presented to Parliament Jun 2022
- Malta implemented Jan 2023
- The Netherlands adopted Dec 2022
- Romania Jan 2023 transposed into Romanian Fiscal Procedure Code
- Poland OUTSTANDING draft legislation published Nov 2022
- Portugal OUTSTANDING no draft legislation yet
- Romania OUTSTANDING no draft legislation yet
- Slovakia Bill adopted into legislation July 2022
- Slovenia law passed Dec 2022
- Spain OUTSTANDING, Council of Ministers approved Bill Dec 2022
- Sweden OUTSTANDING parliament implement bill Nov 2022
The EU is also reviewing a full VAT liability for digital platforms as part of its VAT in the Digital Age reforms.
DAC 7 was approved by the EU Council in March 2021. The new digital platform seller rules will come into effect on 1 January 2023 (first report by 31 Jan 2024). This provides for a standard data format for requests by EU tax authorities from digital marketplaces on their third-party sellers’ VAT transactions. This includes the automatic exchange of this information (AEOI) between tax authorities. Non-compliance with these new reporting obligations will lead to substantial penalties.
DAC 7 covers all transactions for: goods; services; plus gig and sharing economies. And all transaction types – B2C, B2B. B2G, P2P etc.
The Organisation for Economic Cooperation and Development (OECD) has followed this plan to issue OECD optional marketplace reporting guidance for countries. The UK marketplace reporting requirements were recently delayed to 2024.
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Aims of the DAC 7 administrative agreement include:
- Identifying online merchants not properly declaring and paying VAT
- Providing for a consistent and efficient set of requirements for marketplaces to avoid them having not manage different requests and duplicate questions
- Legal ability for tax authorities to work together on joint audits on seller activities from 1 January 2024
Follow all the European Union’s completed and planned reforms via VAT Calc’s EU VAT reform tracker.
DAC aid exchange of VAT data for application of EU VAT Directive
DAC is a set of EU-level legal rules which provide for guidance on the electronic exchange of any data in the furtherance of compliance with domestic laws. It represents an amendment to the EU VAT Directive – the seventh since the 2011 Directive 2011/16/EU.
DAC 7 obliges marketplaces to provide data on their third-party sellers’ transactions, covering
- Sales of goods
- Provision of personal services
- Rentals of property, including house sharing
- Rental and sharing of transport
The information on the above supplies to be provided includes:
- Name and address of merchant
- VAT number
- Tax identification number
- Taxable supplies and income in calendar year
- Bank account details
Started 2023; first report due 31 January 2024
The new DAC7 tax rules apply to digital platforms operating both inside and outside the EU since 1 January 2023. Annual reports are required by the end of the first month following the reporting year. The first DAC 7 report is therefore due by 31 January 2024.
You can check the right VAT calculations on individual or batch transactions with our Advisor and Auditor services.
