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EU publishes details of DAC7 2023 digital platform reporting obligations

Technical framework for exchange of marketplace transaction data exchanges to help tax authorities detect VAT fraud

The European Commission has issued consultation details of technical data requirements for the Directive on Administration Cooperation DAC 7  which comes into force in January 2023. This seeks to harmonise transaction information requests on platform sellers and gig or sharing economy users.

The consultation papers include:

  • Reporting scheme formats for data requests
  • List of statistical data required
  • Standard forms, for the communication of information on Excluded Platform Operators and Foreign Platform Operators to the central register.

This consulatation will last until 12 July 2022. The directive, approved and published in March 2022, amends Directive 2011/16/EU on administrative cooperation in the field of taxation with regard to the exchange of information on the income generated by sellers through digital platforms (DAC7).

Under the EU’s VAT in the Digital Age reform agenda is a review of the marketplace deemed supplier liability. Many marketplaces will claim DAC 7 and similar transaction reporting initiatives will mean such a full liability model for sellers’ transactions is unnecessary.

OECD digital platform reporting harmonisation

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.

Other countries requiring marketplace reporting include: France, Germany and Italy.  The UK is undertaking a similar digital marketplace VAT reporting review.

EU VAT reforms

Reform (click for details) Update
2025 VAT registration thresholds equivalence foreign businesses On track
Virtual events VAT rule changes Agreed
2024 Payment providers' seller transaction reporting and bookkeeping obligations On track
Digital Reporting Requirements including EU e-invoicing harmonisation Implementation of VAT in the Digital Age?
2023 DAC 7 - marketplace reporting harmonisation On track
Financial Services VAT exemption reform proposals Consultation complete; proposal 2023
Tour operator margin scheme VAT reforms EC undertaking fresh review
2022 EU definitive VAT system On hold
EU reduced VAT rate freedoms Enter into force 6 April 2022
IOSS reforms to prevent double taxation Proposals early 2022
VAT in the Digital Age proposals On track for 16 Nov 2022 publication
Single VAT Registration in the EU - extension of OSS On track for 16 Nov 2022 publication
Proposal for VAT treatment of the platform economy On track for 16 Nov 2022 publication
VAT Gap Initiative Q3 2022
2021 One-Stop-Shop (OSS) single EU VAT return In effect since 1 July 2021
Ending €22 import VAT exemption; new IOSS return In effect since 1 July 2021
Marketplace deemed supplier EU VAT reforms In effect since 1 July 2021
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option
EU Generalised Domestic Reverse Charge VAT Mechanism In effect, although no country has adopted this voluntary option
2015 B2C electronic services VAT reforms - MOSS return In effect

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