Felix Desmyttere and Juan Manuel Vazquez discuss the challenges and uncertainties faced by digital platforms in complying with the European reporting framework, specifically Directive 2021/514 (DAC7). They highlight the potential inconsistencies in reporting digital content creators’ activities under DAC7 due to broad and vague definitions in the directive. The authors argue that the non-application of DAC7 to certain activities of digital content creators may lead to an inconsistent reporting landscape and hinder the objective of achieving a level playing field. DAC7 introduces standardized due diligence and reporting obligations for digital platform operators in relation to certain activities of their sellers. The activities covered include cross-border and domestic transactions related to the sale of goods, personal services, rental of property, and transportation. The authors also provide clarifications on terms such as “Platform,” “Personal Service,” and “Consideration” as defined in DAC7. They emphasize that the broad and diverse nature of digital content creators’ activities poses challenges and outstanding questions in complying with DAC7.
Source Kluwertaxblog
