The European Commission has issued a new tax directive, DAC 7, that extends the EU's standards on tax transparency to digital platforms. Read EU DAC 7 Reporting for Marketplace Sellers for details on the tax directive for marketplace merchants.
This article provides a status update of the DAC 7 implementation for the 27 EU member states. We have analysed each proposed law that often are in public consultation. Most of the EU member states follow the EU DAC 7 directives. The only element that member states freely define is the level of fine, it's severity and amount. It is fair to say that there is no procedural guidance available yet to clarify details of the fines.
Included in the update are non member states such as Switzerland and the United Kingdom.
Austria
- approved in July 2022
- included in the Tax Amendment Act 2022
- violations of reporting are considered as a tax offence under the Austrian Act on Tax Offences with fines up to 200'000 EUR in case of intent (100'00 EUR in case of gross negligence)
- effective date: 1st January 2023
Belgium
- gazetted on 30th December 2022 after the Belgian Chamber of Representatives adopted the bill on 15th December 2022
- published as Law No. 2022043134 transposing the EUR Directive 2021/514
- snactions for failure to comply up to 50'000 EUR
- effective date: 1st January 2023
Bulgaria
- approved by the National Assembly on 8th December 2022 and published as "Law on Amendments and Supplements to the Tax and Insurance (Social Security) Procedural Code"
- effective date: 1st January 2023
Croatia
- gazetted on 22nd December 2022
- 26'540 EUR as maximum fine for each case of breach
Cyprus
No draft legislation is available yet.
Czech Republic
- gazetted on 7th December 2022
- fines up to 60'000 EUR for each case of beach
Denmark
- executed order issued by the Danish Minister of Taxation on 6th September 2022
Estonia
- gazetted on 29th December 2022
- 3'300 EUR as maximum fine
Finland
- law ratified by the Finnish President on 29th December 2022
- the local law extend the EUR directive with "nil" reports for platform operators that have no material activities to report
- fines up to 15'000 EUR varying on the seveirty
France
- gazetted on 31st December 2021
- part of the Finance Law for 2022
- the parliament has included additional information to be transferred to tax authorities related to social security of the sellers
- fines up to 50'000 and with being publicly names on a list of non-cooperative operators
Germany
- gazetted on 28th December 2022
- failures to comply in a three-tiered approach: up to 50'000 EUR for non-compliance with registration obligations, up to 30'000 EUR for non-compliance with reporting obligations and up to 5'000 EUR for other compliance failures
Greece
No draft legislation is available yet.
Hungary
No draft legislation is available yet.
Ireland
- bills part of the Finance Act 2021 and the Finance Act 2022
- fines up to 19'045 EUR and a further penalty of 2'535 EUR for each day where a return has not been made
Italy
Research in progress.
Latvia
- gazetted on 20th January 2023
- published as regulation No. 16 amending the tax law to implement the EUR Directive 2021/514
Lithuania
- gazetted on 22nd December 2022
- failure to comply after 2 consecutive reminders may result in the cancellation of the internet access to the operator's website
- when the seller does not provide the requested information, the operator has an obligation to cancel the sellers' account or suspend payments
- fines up to 6'000 EUR
Luxembourg
- draft law submitted by the Minister of Finance to Parliament on 13th June 2022 (draft bill of law N°8029). The law shall be accepted by 31st December 2022 (not been able to find information on the progress in January or February 2023)
- reporting platform operators must register with the Luxembourg tax authorities by 31st December 2023
- fines up to 250'000 EUR
Malta
- gazetted on 20th January 2023 as the Legal Notice 8 of 2023
- various levels of fines up and daily fines up to 50'000 EUR. Up to 30'000 fines to senior managing officials of a reporting Malta platform operator where misleading or false information is found to be been submitted
The Netherlands
- law adopted by the upper house of the Dutch Parliament on 20th December 2022.
- fines up to 900'000 EUR
Romania
- gazetted on 31st January 2023 with the start of the reporting obligations on 3rd February 2023
Poland
- draft law issued by the Ministry of Finance in November 2022 to be implemented into Polish law as from 1st January 2023 (not been able to find information on the progress in January or February 2023)
Portugal
No draft legislation is available yet.
Slovakia
- law signed by the Slovak President on 4th July 2022
- fines up to 10'000 EUR
Slovenia
- bill adopted into legislation in and revised on 27th December 2022 with law No. 4188 amending the tax procedure act
Spain
- draft bill approved by Spain's Council of Ministers on 27th December 2022
Sweden
- law adopted by the Swedish Parliament on 1st December 2022
- initial fine of SEK 2'500 (225 EUR) per reportable seller. Additional fines up to SEK 12'500 (1'123 EUR)
Switzerland*
Switzerland will not implement DAC 7.
United Kingdom*
- draft regulation released on 20th July 2022 and published on 18th October 2022 for public consultation
- marketplace operators are expected to start collecting data from 1st January 2024 with first reports due by 31st January 2025, which is 1 year later than the EU member stats
- fines up to £100 for each inaccurate, incomplete or unverified seller record submitted and up to £5'000 initial fine, with continuing penalties up to £600 per day
*not in the EU
