DAC7 is a new EU regulation that mandates digital platform operators to gather and disclose specific details about users selling goods or services within the EU. Effective from January 1, 2023, these rules apply to digital platforms both inside and outside the EU, with penalties for non-compliance. By collecting and sharing this information, DAC7 aims to combat tax evasion and ensure fair taxation across the EU.

Dac7’s impact on businesses:

• Enhanced Compliance Requirements: Digital platforms must now set up systems to gather, verify, and report seller information, necessitating significant adjustments to data management and reporting procedures.
• Penalties for Non-Compliance: Non-compliance with DAC7 can lead to penalties and enforcement actions by tax authorities.
• Promoting Transparency and Fairness: DAC7 empowers tax authorities to monitor income more effectively, ensuring all due taxes are paid and fostering a fairer tax system.

Andersen can support businesses in understanding their responsibilities under this new regulation by helping determine if they are subject to the registration requirement, facilitating the completion of registration requirements, and implementing the necessary processes and systems for regular reporting.

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