- DAC7 is a new EU Directive that imposes reporting obligations on Platform Operators, but determining whether software qualifies as a Platform and is subject to these obligations can be challenging.
- The definition of Platform under DAC7 includes any software that allows Sellers to connect with users and carry out Relevant Activities for Consideration, with three conditions that must be met.
- The definition of Relevant Activity excludes activities carried out by a Seller acting as an employee of the Platform Operator or a related entity.
- The purpose of DAC7 is to eliminate the risk of Sellers not declaring or under-declaring income, and Platform Operators are required to collect and report information on Sellers to the competent authority of an EU Member State.
- Various materials, such as the OECD Model Rules and the Optional Module, can serve as interpretative aids, along with guidance produced by EU Member States for domestic implementation.
Source Kluwertaxblog
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