On April 9, the Council of Ministers in Poland took a significant step by adopting a bill amending the Act on the Exchange of Tax Information with Other States and Certain Other Acts, commonly known as DAC7.
This legislative move is aimed at strengthening tax transparency, particularly in the realm of digital platforms operating within the European Union (EU).
The DAC7 bill imposes a statutory obligation on operators of digital platforms to collect and furnish tax administrations with detailed information about sellers conducting transactions through these platforms. Notably, the law excludes small and occasional sellers of goods who have conducted less than 30 transactions of this nature during the year, with total remuneration not exceeding EUR 2,000 annually, from the annual reporting requirement by digital platform operators to the Head of the National Revenue Administration.
These regulations align with the DAC7 directive, specifically Council Directive (EU) 2021/514, which amends Directive 2011/16/EU on administrative cooperation in taxation matters. The scope of entities required to comply with the obligation to collect and provide information about sellers includes online e-commerce platforms, accommodation booking platforms, transport rental platforms, and platforms for ordering car rides.
The implementation of this act is expected to significantly enhance the availability of data for tax administrations concerning taxpayers’ income from sales conducted via digital platforms. The cross-border nature and substantial volume of transactions via digital platforms have previously limited the accessibility of such data.
By mandating the collection and reporting of information to tax administrations, the DAC7 bill aims to reduce tax evasion in the digital sphere. This initiative seeks to create a level playing field between sellers operating through traditional means and those utilizing digital platforms, as well as between tax-compliant sellers and those evading taxes.
Key objectives of the DAC7 bill include:
- Introducing an obligation for digital platform operators to collect and verify information on sellers conducting transactions through their platforms.
- Harmonizing the reporting of information on sellers to relevant EU Member States’ tax authorities.
- Annual reporting of seller information by digital platform operators to the Head of the National Revenue Administration, excluding data on small sellers as defined above.
- Facilitating automatic exchange of information among the tax authorities of competent countries.
The new regulations should come into effect on July 1, 2024.
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