The Belgian government has introduced a new tax law on 20 December 2024 that introduces significant amendments to the DAC 7 regulations, focusing on the responsibilities and obligations of reporting platform operators.
This article delves into each of these amendments, providing a comprehensive overview of what these changes mean for platform operators.
Key Amendments to the Belgian DAC 7 Regulation
Enhanced Notification and Reporting Obligations
Article 321sexies of the Belgian Income Tax Code (WIB 92) obliges platform operators – as part of the DAC 7 reporting obligation – to inform individuals about the collection and transfer of their data to the tax authorities. The new law, by amending articles 321quinquies and 321sexies WIB 92, clarifies that the information to be reported to the Belgian competent authority must first be shared with the individuals concerned. This prior notification is intended to enable taxpayers to provide comments on the data provided to the platform operators before it is communicated to the tax authorities. To achieve this, the law stipulates that the information must be shared with the individuals concerned no later than 10 January, whereas previously the deadline for this obligation coincided with the reporting deadline on 31 January.
Conditions for re-registration
The law also clarifies the rules for platform operators whose registration has been revoked and who wish to re-register in Belgium for DAC 7 purposes. According to the amended Article 321septies WIB 92, these operators must provide sufficient guarantees to the Belgian competent authority regarding their commitment to comply with reporting obligations before re-registration can take place.
Any outstanding declarations in Belgium or in the original Member State must then be submitted to the Belgian competent authority. Article 321septies WIB 92 is further supplemented with a new paragraph stating that the Belgian competent authority may request the European Commission to remove a platform operator from the central register under certain conditions.
Data retention with respect to excluded sellers
Article 321decies WIB 92 specifies the retention period for data collected by platform operators. The third paragraph of article 321decies WIB 92 is being removed. As a result of this amendment, platform operators are now required to retain data relating to an ‘excluded seller’ for a period of 10 years instead of the current 36 months.
Breaches Regarding “Processing of Personal Data”
Specific rules are introduced for situations where platform operators face breaches related to the “processing of personal data”.
Revised Penalty Structure
Amendments to the sanctions regime include the possibility of “zero penalties” for violations that are beyond the control of the parties involved. The previous wording of Article 445, § 4, WIB 92 did not allow for such a zero-penalty provision, as the article stipulated that the competent authority “imposes” the penalty.
To account for situations that are “beyond the will” of the responsible party for the reporting obligation, the article has been rephrased to state that the competent official “may impose” the penalty.
Additionally, a new paragraph is added to Article 445 WIB 92, granting the King the authority to provide for the application modalities of measures for the individualization of sanctions by the competent judge.
Key takeaways
1) Notification and Reporting: Platform operators must inform individuals about data reporting by 10 January to allow feedback before the 31 January reporting deadline.
2) Stricter Re-registration Rules: Revoked platform operators seeking re-registration in Belgium must provide guarantees of compliance and address any outstanding declarations.
3) Extended Data Retention Periods: Operators must retain data related to excluded sellers for 10 years, compared to the previous requirement of 36 months.
4) New Rules for Data Breaches: Specific rules are introduced for situations where platform operators face breaches related to the “processing of personal data”.
5) Flexible Penalty Framework: Authorities may now impose zero penalties for violations beyond the control of responsible parties.
Reminder: Don’t forget to consider the upcoming DAC 7 deadlines for the 2024 reporting period! For more detailed information, please refer to our previous Newsflash.
In case you would like to know more about the DAC 7 reporting obligation or if you have a client which might be in scope, please reach out to Pieter Deré (BE), Niels D’Hondt (BE) or Elisa Debersaques (BE)
