We have stepped into the new year and with it approaches the deadline for the first report under the reporting obligation for digital platform operators. The deadline is 31 January 2024. If you are a platform that facilitates individual sellers in providing property or vehicle rentals or offering their goods or personal services such as building work, hairdressing or chauffeur services, you may be subject to this obligation. So, it is high time to prepare the report.
The reporting obligation will be fulfilled through the “My Taxes” portal, featuring a section for DAC 7 compliance. The portal currently offers electronic forms for registration of a non-established platform operator, notification of a Czech reporting platform operator or notification of a platform operator on the fulfilment of the exclusion condition from the reporting obligation. There is also a form available for notifying of a notifiable activity carried out by a notifiable vendor to comply with the DAC 7 reporting obligation, which will be accompanied by a XML file containing the relevant information on notifiable vendors under DAC 7 in the structure published by the OECD.
The OECD has also published a “guide” detailing the XML format and the necessary information it should comprise. This encompasses the structure of the information needed to identify the operator of the platform, as well as specifics on data the platform needs to record on individual sellers or information that needs to be collected in relation to the notified activity.
During 2023, the OECD also published on their website a list of questions and answers related to the DAC 7 reporting obligation and the data to be reported (an updated version was released in October 2023).
The OECD has commented on various aspects, including the obligations arising when a platform sells a good or service on their behalf on the seller’s account (for example, accommodation or food) or on the way of approaching the sale of vouchers through a platform and the time and manner of reporting of these sales.
And what sanctions do platforms face if they fail to comply with this reporting obligation? Failure to comply may result in platforms being placed on the list of non-cooperating platforms. This can lead to a ban or fines of up to CZK 1.5 million. In addition, they may face potential tax audits or other actions by the tax authority.
If you would like to learn more about this topic, or if you are unsure whether your website meets the definition of a platform for the purposes of DAC 7, or if you are concerned that you would not be able to prepare the report in time yourself, do not hesitate to contact us – we will be happy to help. You can also visit our website for more detailed information.
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