New obligations under DAC7 Directive
On 1 July 2024, the DAC7 Directive came into force in Poland, imposing new obligations on digital platform operators. The deadline for taxpayers subject to the new legislation to comply with the reporting requirements for 2023 and 2024 is 31 January 2025.
In addition, by 31 December 2024, operators must also comply with the due diligence procedure, which requires collection of information on sellers.
What is the DAC7 Directive?
The DAC7 Directive introduced by the European Union aims to combat tax avoidance in the digital sector. It introduces new obligations for digital platform operators, who must report data on sellers transacting through these platforms, and on their revenues. The aim is to increase the transparency of transactions and to facilitate the exchange of tax information between EU member states.
New obligations for digital platform operators
Under the new legislation, digital platform operators will be required to collect and report detailed information on the sellers using their platforms. These obligations include, but are not limited to, transactions related to:
- the sale of goods
- the supply of services
- the provision of access to transport
- rental of real estate.
The data to be reported to the tax authorities applies to those sellers only who carried out at least 30 transactions during the year or whose remuneration exceeded the equivalent of €2,000.
Due diligence procedure
As part of the due diligence procedure, platform operators are required to ask sellers to provide the necessary information no later than the day the seller gains access to the platform. If the seller does not provide the information within 20 days of the first request, the platform operator is obliged to repeat the request for information.
If the seller has not provided the operator with the required data despite two requests, the operator is obliged to take further measures, such as
- withholding the seller’s remuneration until the data is provided or, if this proves impossible for technical, legal or procedural reasons,
- blocking the seller from operating on the platform until the required information is provided.
This means that the entire due diligence procedure can take as long as 60 days. Therefore, if it is started after 1 November 2024, this requirement may prove impossible to be complied with in the absence of any response from the seller.
Consequences of non-compliance
If it is not possible to collect all of the sellers’ data as required by 31 December 2024, but the operator can demonstrate that it has made all reasonable efforts to do so (including contacting the seller at least twice at reasonable intervals to obtain the necessary information), it will be relieved of liability for not having the full set of data.
In practice, this means that even if certain data is not collected in time, the operator will be protected from a fine, which, according to the legislation, can be up to PLN 1 million.
How to avoid sanctions?
To avoid the negative consequences of non-compliance with the obligations under the DAC7 Directive, digital platform operators should start the process of collecting the required data as soon as possible. This process, according to the regulations, can take up to 60 days, so an early start is crucial in order to meet the legal deadlines.
It is also important that operators not only initiate the process, but also regularly monitor its progress and take appropriate action if sellers do not respond.
Feel free to contact us
Should you require any further information on DAC7 in Poland, please do not hesitate to contact us. We are ready to answer any questions or concerns you may have and assist you with the new regulations.
KONTAKT
E: aleksandra.kalinowska@pl.Andersen.com
T: +48 22 690 08 70
M: +48 724 440 693
E: elzbieta.lis@pl.Andersen.com
T: +48 32 731 68 58
M: +48 664 948 038
E: tomasz.wichary@pl.andersen.com
T: +48 32 731 68 95