- DAC7 Implementation: On October 3, 2024, the Italian Revenue Agency published Legal Principle No. 3/2024, clarifying the definitions of “platform” and “seller” within the context of Legislative Decree No. 32/2023, which implements EU Directive No. 514/2021 (DAC7).
- Objective of DAC7: The DAC7 Directive aims to combat fraud, tax evasion, and avoidance by ensuring that income generated through digital platforms is reported to tax authorities, facilitating the automatic exchange of information among EU member states.
- Reporting Obligations: Digital platform operators must report information related to activities like real estate leasing, personal services, and goods sales for sellers residing in Italy or other EU member states, with exceptions for large accommodation providers and “small advertisers.”
- Communication Requirements: Platforms must electronically submit relevant seller data by January 31 of the following year, using an XML file format via the Revenue Agency’s portal, with information processed and shared with EU tax authorities within two months.
- Broad Definitions of Platforms and Sellers: The Revenue Agency’s interpretation includes any website facilitating sales, regardless of direct seller-buyer contact, and recognizes sellers without specific platform accounts if they have contractual relationships, requiring platforms to closely monitor and gather necessary information for compliance.
Source PwC
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