- DAC7 Responsibilities: Platform operators must accurately report seller information, including VAT numbers, to meet DAC7 requirements and enhance tax transparency.
- Due Diligence Standards: Operators must establish procedures to collect and verify seller data, ensuring reliability and preventing tax evasion.
- Verification Process: Use of electronic tools and records is essential for validating tax IDs and VAT numbers, with corrections required if inaccuracies are found.
- Compliance Risks: Failure to validate VAT numbers can lead to non-compliance, scrutiny, and penalties, highlighting the importance of robust data management systems.
- Flexibility and Challenges: DAC7 implies rather than mandates validation, allowing flexibility to address operational challenges and external factors, like system unavailability.
Source Innovate Tax
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