DAC 7 recap
In previous alerts we informed you that the DAC7 reporting obligation impacts various digital platforms operators.
The scope of this obligation relates in a broad sense to platforms (any software, including a website, application, and so forth) that facilitate, directly or indirectly, the connection between sellers and buyers for the carrying out of a relevant activity such as rental of immovable property, personal services, sale of goods, and rental of any mode of transport.
The DAC7’s reach is not limited to the European Union, but extends to numerous platforms and companies established outside the EU as well. For instance, platform operators established in a non-EU country that facilitate the rental of immovable property located in an EU member state can fall in scope of the DAC7 reporting obligation. The same applies to non-EU platform operators with sellers resident in the EU, selling goods or providing services via the platform.
Upcoming deadline – January 31, 2024
The DAC 7 reporting obligation is already in effect, and with the approaching deadline, platform operators must act promptly. The required due diligence on the information collected from sellers onboarded during the calendar year 2023 should have concluded by December 31st, 2023. For the sellers onboarded on the platform before 2023, platform operators have an additional year to comply with the due diligence obligation.
After completing their due diligence, platform operators are required to comply with the reporting obligation no later than January 31st of the calendar year following the reporting period. This means 31 January 2024 for the information of the reporting period 2023.
This leaves qualifying platform operators currently with less than 2 weeks to meet the upcoming reporting deadline of January 31, 2024.
Penalties for non-compliance
The Belgian implementing legislation outlines specific sanctions for non-compliance with the reporting obligations. Non-EU platform operators failing to register may be subject to a fine of €25,000. If such platforms persist in their activities on Belgian territory after their registration has been revoked by the competent authority, a fine of €50,000 will be applicable. In the worst case, the platform operator may face a ban on providing services in Belgium.
Penalties for providing incomplete information vary from €1,250 to €12,500. For such violations committed with fraudulent intent or with the intent to harm, fines ranging from €2,500 to €25,000 are applicable. For non-submission or late submission of information, fines ranging from €2,500 to €25,000 can be imposed, €5,000 to €50,000 if there is fraudulent intent.
Key takeaways
- Any company with a website or app that allows third parties to connect potentially may be in scope of DAC7.
- The first reporting deadline is due for January 31, 2024, reporting on calendar year 2023.
- Non, incomplete or late submission could lead to fines ranging from € 1,250 to € 25,000.
How we can assist
- The Belgian tax authorities have made an XML conversion tool available for converting manual inputs of the provided fields into an XML file for the DAC 7 filing via the MyMinfin platform. Completing the information manually in the XML conversion tool could however be a burdensome and time consuming task.
- We can advise you on the technical aspects and administrative guidance in this respect. If you require our assistance, we are pleased to propose our tool to efficiently compile the required data and perform the required conversion.
Contact your PwC trusted advisor:
Pieter Deré, Karl Struyf, Inge Meynen, Jeroen Aerts
