On March 23, 2022, the bill on transparency about income from digital platforms (also known as DAC7) has been presented to the House of Representatives. With this bill, digital platforms will be obliged from 1 January 2023 to annually provide information to the tax authorities about sellers who earn money through their platforms. This information is automatically exchanged with the tax authorities of the EU Member States for which this information is of interest. This prevents people from (unintentionally) avoiding tax via these platforms.
With the bill there will be more transparency about income that residents of the European Union earn via the digital platforms. This reduces the chance that taxpayers will not (fully) declare this income and therefore ensures fairer taxation. This also prevents unfair competition with traditional (non-digital) companies. For example, if you rent out your house via a digital platform, or as a taxi driver offers you services via a platform, this platform must in the future pass on information about this – for example about the income earned – to the tax authorities.
A digital platform supplies the information to one EU member state. In order to provide the tax authorities of all EU Member States with the information they need to correctly determine the taxes due, this information is then exchanged via a central secure system of the European Union with the EU Member States with an interest.
In addition to this obligation, the bill also contains a number of changes that are not specifically aimed at digital platforms, but improve the way data exchange between EU Member States. This concerns, for example, the legal protection of taxpayers in joint investigations by several EU Member States and data protection in the event of a data breach.
With this bill, the EU Directive on transparency of income via the digital platform economy and other amendments will be implemented in Dutch law. The other EU Member States will also implement this directive in a similar way.
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