On the 25th November, the Council agreed on
a supplement to European Directive 2011/16 covering cooperation between
administrative authorities in the taxation sector. The abbreviation "DAC
7" refers to the seventh amendment that has been made in the meantime.
This time, the focus is on extending the EU tax transparency rules to include
digital platforms. This is to ensure that all those who earn money from the
sale of goods or services on platforms, actually pay the fair share of tax
revenue owed by them. Not least, this would also make the income of so-called
"platform workers" more transparent, especially in, but not limited
to, cross-border situations. In an extreme case, the platform operator,
platform worker and service recipient could be located in three different
countries. In these cases it should also ensure that the competent tax
authority is aware of the income. The reporting requirements focus on the
platform operator. It must regularly and automatically transmit all relevant
income data needed to identify the platform worker, the income and strictly
speaking, the turnover generated via the platform, to the authority in its
country of origin. This authority will then automatically forward the
information to the country of taxation. All of this will take place regardless
of whether the platform operator is located in the EU or in a third country
outside the EU. The procedure should not only facilitate tax access but also
reduce the administrative burden of platforms, which are often subject to various
national reporting obligations.
From the point of view of social security,
this step is to be welcomed and it is a step in the right direction. However,
the data obtained in this way cannot be used for social security purposes
without further ado - if only because of the purpose limitation. Therefore,
continuation of projects such as establishing a "single
digital window" is important.
The Council will adopt the draft after linguistic revision in the coming weeks, following consultation with the
European Parliament and the European Economic and Social Committee.