The European Council has adopted new rules amending the directive on administrative cooperation in the field of taxation. The new rules, which apply to digital platforms located both inside and outside the EU from 1 January 2023, create an obligation for digital platform operators to report the income earned by sellers on their platforms and for member states to automatically exchange this information. The new rules are intended to help national tax authorities detect income earned through digital platforms and determine the relevant tax obligations. They will also assist operators of digital platforms, as reporting will only take place in one member state in accordance with a common EU framework.
Amendments have also been made to:
improve the exchange of information and cooperation between member states' tax authorities, such as making it easier to obtain information on groups of taxpayers;
improve the rules for carrying out simultaneous controls;
to allow officials to be present in another member state during an enquiry; and
provide a framework for the competent authorities of two or more member states to conduct joint audits.
The framework is intended to be operational in all member states from 2024 at the latest.
The European Council has adopted new rules amending the directive on administrative cooperation in the field of taxation. The new rules, which apply to digital platforms located both inside and outside the EU from 1 January 2023, create an obligation for digital platform operators to report the income earned by sellers on their platforms and for member states to automatically exchange this information. The new rules are intended to help national tax authorities detect income earned through digital platforms and determine the relevant tax obligations. They will also assist operators of digital platforms, as reporting will only take place in one member state in accordance with a common EU framework.
Amendments have also been made to:
improve the exchange of information and cooperation between member states' tax authorities, such as making it easier to obtain information on groups of taxpayers;
improve the rules for carrying out simultaneous controls;
to allow officials to be present in another member state during an enquiry; and
provide a framework for the competent authorities of two or more member states to conduct joint audits.
The framework is intended to be operational in all member states from 2024 at the latest.
