IOTA Webinar in partnership with DG TAXUD on "The effective use of new information received under Council Directive (EU) 2021/514 (‘DAC7’)”

The Webinar focused on the effective use of new information under Council Directive (EU) 2021/514 (‘DAC7’) reported by Digital Platform Operators concerning the income derived by sellers (both by individuals and entities) from performing cross-border and non-cross-border commercial activities.

These reporting obligations introduced by the Directive apply, with some exceptions, to operators of online marketplaces (e.g., websites and mobile applications) who provide their interface to sellers making supplies to customers inside the EU. The new reporting obligations on Digital Platform Operators came into effect on 1 January 2023, with the first information being supplied in January 2024. The rules apply to platforms within the European Union as well as those in third countries.

The new data exchange poses new challenges for tax authorities, both in terms of the quality of data provided by DAC7, data analysis, and effective use of data in the compliance management activities of the tax administration.

The Webinar began with welcome remarks from the IOTA Secretariat's International Taxation Expert Jonatan Heath and his fellow colleague Ivana Donchevska. Together, they set the scene for engaging discussions on DAC7. Following this, participants listened to a presentation by the Adrian Kelly, from DG TAXUD in the EU Commission,  who provided an overview of DAC7 and the current state of affairs.

The session continued with presentations from IOTA member tax administrations, where speakers shared th

eir experiences in obtaining data from Digital Platform Operators and using that data to identify and address non-compliance. The country presentations included:

• Finland: “First year of reporting of the digital platform operators based on DAC7 Directive” presented by Elina Väinölä;
• Sweden: “Use of information regarding sales on digital platforms” presented by Johan Falksäter.

After each plenary session, the webinar featured Q&A segments where participants exchanged views and shared information related to DAC7.

All materials and presentations from the Webinar are now available on the event's webpage, and a recording of the event will be provided soon. The event was facilitated by Jonathan Heath, with support from his colleague, Ivana Donchevska.