News item | 23-03-2022 | 5:17 pm
Today, the bill on transparency about income from digital platforms (also known as DAC7) was presented to the House of Representatives. With this bill, digital platforms will be obliged from January 1, 2023 to annually provide information to the Tax and Customs Administration about sellers who earn money through their platforms. This information is automatically exchanged with the tax authorities of the EU Member States for which this information is relevant. This prevents people from (unintentionally) avoiding tax via these platforms.
The bill will provide more transparency about income that residents of the European Union earn through the digital platforms. This reduces the chance that taxpayers do not (fully) declare this income and therefore ensures fairer taxation. This also prevents unfair competition with traditional (non-digital) companies. For example, if you rent out your house via a digital platform, or offer your services as a taxi driver via a platform, this platform will have to pass on information about this – for example about the income earned – to the Tax and Customs Administration in the future.
A digital platform delivers the information to one EU member state. In order to provide the tax authorities of all EU Member States with the information they need to correctly determine the taxes due, this information is then exchanged with the EU Member States with an interest via a central secure system of the European Union.
In addition to this obligation, the bill also contains a number of changes that are not specifically aimed at digital platforms, but that improve the way in which data is exchanged between EU member states. This concerns, for example, the legal protection of taxpayers in the event of joint investigations by several EU Member States and data protection in the event of a data breach.
This legislative proposal implements the EU Transparency Directive with regard to income via the digital platform economy and other amendments to Dutch legislation. The other EU member states will also implement this directive in a similar way.