- The EU will begin joint audits by tax authorities from the beginning of 2024 as part of the European directive DAC7, which aims to regulate data exchange in the digital platform economy.
- However, many countries have yet to introduce the necessary regulations, and there are concerns that parties involved may not be able to comply with the new standards by the deadline.
- The directive is intended to improve tax transparency and enforcement, particularly for sellers on platforms who may not declare their income or comply with VAT obligations.
- Despite this, there are doubts about the effectiveness of the new system, as data is not supplemented with context, making it difficult for inspectors to investigate VAT fraud.
- Furthermore, there are concerns that tax authorities may not use the data supplied for inspections.
- The Dutch tax authorities have also tempered expectations regarding enforcement due to staff shortages.
- The automatic exchange between EU Member States is expected to begin on 29 February 2024.
Source Taxlive
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