DAC7 directive from July 1, 2024. – New regulations for reporting sales on digital platforms

With the dynamic development of the digital economy, EU legislation is constantly striving to improve control and regulatory mechanisms. It is in this context that the DAC Directive7 is emerging – an important element in strengthening the transparency of e-commerce activities, which will come into force in Poland as of July 1, 2024, introducing new obligations for digital platforms and their users.

New reporting duties

The role of digital platforms in the daily lives of consumers continues to grow, and the responsibility for proper settlement of transactions is gaining importance. The DAC Directive7 carries with it a number of information reporting requirements. The data that operators will have to collect and report to tax authorities applies to the period starting January 1, 2023, and includes both real estate rentals, personally provided services and sales of goods.

The regulations specify that those whose activity exceeds 30 transactions during the year or whose revenues exceed €2,000 are subject to reporting. Distribution platform operators will be required to obtain detailed personal data of users, including identification data (name, surname, date of birth, TIN).

Who will be covered by the new regulations?

The changes have a direct impact on a wide spectrum of e-commerce players. They affect both established market players such as OLX, Booking, and Vinted, as well as small entrepreneurs using digital solutions to promote and sell their products or services. The fundamental change is the need to record and report detailed information about users and their business operations.

Entrepreneurs should prepare

In view of the upcoming regulations, businesses and platform operators must revise and optimize their reporting strategies and mechanisms. Adequate procedures will become necessary to ensure compliance with the new regulations. Since the obligations will be retroactive, preparatory steps should be taken with due diligence and in advance.

In today’s article, we discuss the main aspects of the DAC7 directive, taking a closer look at its essence and the guidelines it sets for e-commerce market players. We encourage you to keep up with the latest news and analysis on this EU regulation – awareness of the upcoming changes is the first step to implementing effective solutions for the future.

The above article presents only general information and does not constitute legal advice. Should you need to consult and seek more detailed information, we encourage you to contact experts in the field of tax law and e-commerce regulation.