DAC7 is an EU directive from 2021. It obliges e-commerce platform owners to submit reports on users selling through them. This will provide the tax authorities with information about individuals who may be subject to tax filing.
Who does the directive apply to?
The reporting obligation will apply to platforms that facilitate the rental of real estate or parking spaces, the personal provision of services, the sale of goods, and the rental of vehicles. Reports to the Head of the National Revenue Administration will include users of platforms such as Vinted, OLX, and Airbnb who have completed at least 30 transactions in a year or whose revenue from sales on the platform exceeded €2,000.
In the information submitted to tax authorities, the platform will be required to provide identifying information about sellers, including their first and last name, Tax Identification Number (NIP), bank account number, and commissions collected on behalf of the sales platform. If the seller is a property rental company, the report will also include the property address, land and mortgage register number, and the number of days the property was available for rent.
To obtain information, the platform operator may request it from the seller. If the platform operator fails to respond to the request, the platform operator may withhold payments to the seller until the information is provided.
If the platform operator fails to fulfill its obligations, it will be subject to a fine of up to PLN 1,000,000.
Since when?
Poland has repeatedly postponed the implementation of the directive's provisions into its legal system. On February 13, a new draft implementing act was published. It imposes reporting obligations for 2024. The act itself is scheduled to enter into force on July 1, 2024.
I'm in the report, what's next?
Meeting the qualifying conditions for a DAC7 report doesn't mean you'll have to pay tax. If you don't earn any income from the sale (the purchase price of the item is higher than the sale price), there will be no taxable income. The sale of movable property is also exempt from income tax, provided you own the item for at least six months.
However, if the tax authority were to conclude that our sales are of a regular and organized nature, they could deem us to be conducting business activity. This would have significant consequences. Income from the sale of movable property in business activities is not exempt. In certain circumstances, health insurance contributions may also be required. It will then be important to determine whether the income from the business falls within the limit for unregistered activity or not.
We will keep you informed about changes in the implementation process of the DAC7 directive.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of February 20, 2024
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