In January, we passed the first deadline for filing the DAC 7 report. Many companies are still figuring out how to create the mandatory XML file, as converting the data is not exactly easy. The tax administration does not accept reports in the XLS format, so one of the biggest challenges platform operators face with DAC 7 is converting the data into the required XML format. This is because the conversion process involves a number of complex embedded structures. If this problem concerns you, read on!
How to properly file DAC 7 using the XML report?
On the OECD website you will find both a tutorial and a flowchart on how to properly file an XML report, but these tutorials add up to over 100 pages in total and require quite extensive technical know-how in this area.
If you are unsure how to successfully convert your data into the required XML format, we recommend using the services of experienced professionals. We provide our clients with comprehensive support in the report preparation and filing process. For a complete overview of our services related to DAC 7, including the process of how we create an XML report for our clients, please visit our website. We are happy to help you.
What is DAC 7 and what does it mean for your company?
In the context of the ever-evolving digital economy, the European Union came up with DAC 7 last year, which imposes requirements on digital platforms and expands the framework for automatic exchange of tax information. This directive is effective as of 1 January 2023, and the first report under this directive was to be filed by January this year. DAC 7 requires digital platforms (e.g. online marketplaces, intermediary portals, third party service/accommodation providers) to identify their users, collect information about their transactions, and then report this information to the relevant tax authorities. Ignoring DAC 7 can lead to serious financial and legal consequences for your company, including fines and other penalties.
Avoid unnecessary penalties by using the assistance of our experienced professionals, who can advise you on filing DAC 7 reporting in the correct format. For a no-obligation consultation, simply fill in a short form.
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