Been talking with bunch of friends about it for long time. Some may follow news, some may not, but this year EU established new laws for digital platforms. DAC7 – New reporting obligations for digital platforms, both EU and non-EU platform operators are impacted.
In short:
EU tax transparency rules to digital platforms and introduces an obligation for platform operators to provide information on income derived by sellers through platforms, as from 2023 onwards. The information collected will be shared with the tax authorities of the concerned Member States with the aim of addressing the lack of tax compliance and the under-declaration of income earned from commercial activities carried out with the intermediation of such digital platforms.I read from Finnish news, that basically all platforms were you are selling goods, will be reporting any seller who had 30+ transactions or money exceeding 2000 euro.
This applies not only companies, but private people who sell either stuff or "service", including live streaming etc.
Sellers (or providers of services), whether individuals or of any legal form, making use of such platforms for commercial purposes will have their details and income notified to the tax authorities of the EU Member States.Massive scale of this operation leaves one to think can
everything be monitored? At least in Finland, its been mentioned tax authorities have shifted emphasis strongly. No longer you need human staff filling forms and saving documents, when it is all done automatically, so big % of staff has shifted into "tax agents" hunting people and companies who appear not to give all they should. Now that we live first year when new regulations are starting to take place, it may be also curious to know if people have even thought about it. That all the massive changes in services like discogs, are not merely done out of spite for users, but due regulations that force them to do so? Including, reporting all the sellers who have certain amount of transactions or income.
Now that a lot of info is processed automatically, it will be no problem for tax authorities to find anomalies. It is again one more in line of changes in society, that would appear to suppress possibilities of underground culture, and attempt to such everything into commercial megamachine.
If it is possible to really monitor and keep track on every citizen who has "30 transactions" in some service... it would make one think could you keep putting out even band shirts or tape, if platform will provide your data to authorities - who'll be looking into if you'd actually need to pay taxes, VAT and income. Already now I know cases where getting a bit too much money via paypal took you into inspection by tax authorities. I know also guys who know the local rules and have been balancing on fine line of staying with level of income they do not need to report.
Like quite often, personally I have no direct problem. Running legit company with professional book keeper, so they'll handle everything by-the-book. I am more interested how this type of thing will change culture, if new obligations reduces possibilities to even
give it a try?
DAC7 was formally adopted in 2021, but now 2023 is first year that is reported. It will start to fully take place so remains to see effects. More info is easy to search online, including domestic tax authorities sites.
Suomessa esim:
https://www.vero.fi/tietoa-verohallinnosta/yhteystiedot-ja-asiointi/lomakkeet/kuvaus/raportoivan-alustaoperaattorin-vuosi-ilmoitus/tiedonantovelvollisuus-digitaalisen-alustan-kautta-välitetyista-palveluista-ja-myynneista/Ei päädy ilmoitettavaksi jos "myyjällä on ollut kalenterivuoden aikana saman alustaoperaattorin kautta yhteensä enintään 30 tavaramyyntiä ja vastikkeiden määrä on ollut yhteensä enintään 2 000 euroa."
