New transparency rules on digital platforms

Dec 07, 2020

European member states agree to extend EU tax transparency rules to digital platforms. It is to ensure that those who make money through the sale of goods or services on platforms pay tax. This appears to be the latest step in the EU’s digital tax agenda.  

The agreed proposal on administrative cooperation (DAC 7) will ensure that Member States automatically exchange information on the revenues generated by sellers on digital platforms, whether the platform is located in the EU or not. Formal adoption will follow once the European Parliament and the Economic and Social Committee give their opinion. The new rules will apply from 1 January 2023 onwards.