891I Reporting obligations for digital platform operators

Summary

Section 891I provides for the transposition of Article 1(8) of Council Directive (EU) 2021/514¹, which amends Directive 2011/16/EU on administrative cooperation between EU Member States in the field of taxation.

This is the sixth extension to the Directive and is more commonly referred to as DAC7.

Details

(1) The purpose of this section is to provide for the collection and reporting of certain information by reportable platform operators in respect of certain activities undertaken by reportable sellers on their platforms.

Definitions

(2) The meaning of certain terms used in section 891I are defined as follows:

“AML Directive” means Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015² on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing amending Regulation (EU) 648/2012 of the European Parliament and of the Council repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EU, as amended by Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018³ (commonly known as AMLD5),

“authorised DAC officer” means an officer of Revenue authorised under subsection (12).,

“beneficial owner” has the same meaning as in the AML Directive,

“business registration number” means a unique business identification number issued by a Member State, or a functional equivalent in the absence of a business identification number,

the following terms-

“consideration”, “effective qualifying competent authority agreement”, “entity”, “excluded platform operator”, “excluded seller”, “financial account identifier”, “goods”, “platform”, “platform operator”, “primary address”, “property listing”, “qualified non-union platform operator”, “qualified relevant activities”, “relevant activity”, “reportable period”, “reportable seller”, “reporting platform operator”, “seller”, “TIN”, and “VAT identification number”,

have the same meanings respectively given to them by Section I of Annex V to the Directive,

“designated person” has the same meaning as in Part 4 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010⁴,

“Directive” means Council Directive 2011/16/EU of 15 February 2011⁵ as amended by-

• Council Directive 2014/107/EU of 9 December 2014⁶ (commonly known as DAC2),
• Council Directive (EU) 2015/2376 of 8 December 2015⁷ (commonly known as DAC3),
• Council Directive (EU) 2016/881 of 25 May 2016⁸ (commonly known as DAC4),
• Council Directive (EU) 2016/2258 of 6 December 2016⁹ (commonly known as DAC5),
• Council Directive (EU) 2018/822 of 25 May 2018¹⁰ (commonly known as DAC6),
• Council Directive (EU) 2020/876 of 24 June 2020¹¹ (commonly known as the Covid extensions), and
• Council Directive (EU) 2021/514/ of 22 March 2021¹² (DAC7),

“Platform Operator ID” means a unique individual identification number that will be assigned to the platform operator by the Revenue Commissioners once it has registered with them for the purposes of section 891I,

“relevant information” is defined in subsection (7)(a) and means the information that must be supplied by the reportable seller to the reporting platform operator in order for the reportable platform operator to comply with the reporting obligations imposed on it by subsection (5).

Reportable platform operators

(3) Subsection (3) sets out the registration obligations of reportable platform operators.

(3)(a) A platform operator that -

• (3)(a)(i) is resident in the State for tax purposes,
• (3)(a)(ii) is incorporated in the State,
• (3)(a)(iii) has a place of management in the State, or
• (3)(a)(iv) has a permanent establishment in the State and is not a qualified non-union platform operator,

shall register with the Revenue Commissioners as a reporting platform operator for the purposes of section 891I.

(3)(b) A platform operator that meets one or more of the conditions of subsection (3)(a) and also satisfies those conditions in another Member State may elect to register as a reporting platform operator with the competent authority of that other Member State. If that election is notified in writing to the Revenue Commissioners then that platform operator will not be required to register with the Revenue Commissioners also.

A reportable platform operator covered by the provisions of subsection (3)(c) or subsection (3)(d) are referred to as a “Non-Union reportable platform operator”.

(3)(c)(i) and (c)(ii) A platform operator that facilitates ‘relevant activities’ in a Member State (including the State) by ‘reportable sellers’ or involving the rental of real estate and that is not required to register under paragraph (a) as a reporting platform operator with

• the Revenue Commissioners, or
• the competent authority of another Member State,

shall register with the Revenue Commissioners as a reporting platform operator for the purposes of section 891I and the Revenue Commissioners will provide them with a Platform Operator ID.

(3)(ca)A Non-Union platform operator that is registering with the Revenue Commissioners under the provisions of subsection(3)(c) is required to provide the following information:

1. the name of the platform operator,
2. the postal address of the platform operator,
3. the electronic address, including website addresses, of the platform operator,
4. any Tax Identification Numbers (TIN’s) that have been issued to the platform operator,
5. a statement with information about the identification of the platform operator for VAT purposes within the European Union, pursuant to Title XII, Chapter 6, Sections 2 and 3 of Council Directive 2006/112/EC¹³,
6. the Member States in which reportable sellers are resident.

3(cb) A Non-Union reportable platform operator registered with the Revenue Commissioners prior to 1 January 2024 is required to provide the information required under subsection(3)(ca) to the Revenue Commissioners by 31 January 2024.

3(cc) Where there is a change to any of the information supplied under the provisions of subsection(3)(ca) the Non-Union reportable platform operator must advise the Revenue Commissioners of the change by the end of the month after the month in which the change occurred.

(3)(d) A platform operator that facilitates ‘relevant activities’ in a Member State (including the State) by ‘reportable sellers’ or involving the rental of real estate and is not required to register as a reporting platform operator with Revenue Commissioners if

• it has registered as a reporting platform operator with the competent authority in another Member State,
• it has been assigned the equivalent of a Platform Operator ID by that competent authority,
• the Platform Operator ID assigned to it has not been revoked.

3(e) A platform operator, that has registered as a reporting platform operator with the Revenue Commissioners under the provisions of subsection (3)(c), that does not comply with the obligations placed on it under the provisions of section 891I or regulations made under subsection (9), shall have the Platform Operator ID assigned to it by the Revenue Commissioners revoked.

3(f) A Platform Operator ID shall not be revoked by the Revenue Commissioners until

1. two reminders, in writing, have been issued by the Revenue Commissioners to the platform operator advising the platform operator of the obligations imposed on them under the provisions of section 891I, and
2. a period of 30 days has elapsed from the date the second reminder was issued.

3(g) Where a Platform Operator ID has been revoked by the Revenue Commissioners,

or the equivalent of a Platform Operator ID that has been revoked by the competent authority of another Member State,

the Platform Operator ID will not be reinstated, or a new Platform Operator ID issued to the platform operator, until the platform operator demonstrates by way of documentary evidence and provides written assurances to the Revenue Commissioners that it will comply with the obligations imposed on it by this section, the regulations made under this section and under similar provisions that may be in force in any other Member State.

3(h) An excluded platform operator registered in the State shall, by the 31 January of the year immediately after the end of the reportable period, make a return to the Revenue Commissioners

• confirming that the excluded platform operator has not facilitated any relevant activities in the reportable period, and
• providing any particulars that are necessary to demonstrate that the excluded platform operator is not a reportable platform operator.

Return

(4) A reportable platform operator registered in the State for the purposes of section 891I shall, by the 31 January of the year immediately after the end of the reportable period, make a return to the Revenue Commissioners.

A reportable platform operator is also obliged to provide the reportable seller with a copy of the information contained in the return made to the Revenue Commissioners in respect of the reportable seller.

Information to be included on the return

(5) Subsection (5) sets out the information that is to be included in return to be made under subsection (4).

(5)(a) The information to be included in the return in respect of a reporting platform operator is as follows:

1. their name,
2. their registered office address,
3. their TIN,
4. their Platform Operator ID, where one has been assigned by the Revenue Commissioners, and
5. the business name of each platform in respect of which the reporting platform operator is reporting.

(5)(b) The information to be included in the return in respect of reportable sellers who are individuals is as follows:

1. their first and last name,
2. their primary address,
3. their TIN, and where a reportable seller has a TIN issued by more than one Member State, the Member State of issuance of each TIN, or in the absence of a TIN the place of birth of the reportable seller,
4. their VAT identification number, where available, and
5. their date of birth.

(5)(c) The information to be included in the return in respect of reportable sellers who are not individuals is as follows:

1. their legal name,
2. their primary address,
3. where relevant activities are carried on through a permanent establishment in any Member State, where available, details for each reportable seller of each Member State where such a permanent establishment is located,
4. any TIN issued to each reportable seller, and where a reportable seller has a TIN issued by more than one Member State, the Member State of issuance of each TIN,
5. their VAT identification number, where available, and
6. their business registration number.

(5)(d) The following details are to be included in the return in respect of all reportable sellers:

1. the total consideration paid or credited to them during each quarter of the reportable period along with the number of relevant activities,
2. any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period,
3. their financial account identifier, insofar as –
   1. it is available to the platform operator, and
   2. the competent authority of the Member State in which the reportable seller is resident has not notified Revenue that the competent authority does not intend to use the financial account identifier for the purpose of DAC7 reporting,
4. where different from the name of a reportable seller, the name of the holder of the financial account to which the consideration is paid or credited, to the extent available, as well as any other financial identification information available to the reporting platform operator, and
5. each Member State in which each reportable seller is resident, as determined by the Directive.

(5)(e) Where the relevant activity of a reportable seller includes the rental of immovable property, in addition to the information required to be returned under subsections (5)(b), (5)(c) and (5)(d), the following information is also required:

1. the address of each property listing,
2. the unique identifier(s), allocated under the Registration of Title Act 1964 to the land of each property listing, if available, or, where available, its equivalent under the law of the Member State where it is located,
3. the total consideration paid or credited during each quarter of the reportable period and the number of relevant activities provided with respect to each property listing, and
4. the number of days each property listing was rented during the reportable period and the type of each property listing, where available.

The return should also contain all other information as may be prescribed in regulations made by the Revenue Commissioners under subsection (9).

5(A) A non-union platform operator that has registered with the Revenue Commissioners under the provisions of subsection(3)(c) will not be required to provide the information required under subsection(5) in respect of reportable sellers in a Member State if the information will also be exchanged by the Non-Union Platform Operator under a qualifying competent authority agreement between that Member State and the country in which the Non-Union Platform Operator is resident.

Reportable sellers

(6) A reporting platform operator shall put in place such procedures as may be prescribed in regulations made under subsection (9) to identify when a seller becomes a reportable seller.

(7)(a) A seller, that is not an excluded seller, shall provide the reporting platform operator with the information (the ‘relevant information’) that is necessary for the reporting platform operator to comply with the reporting obligations imposed on them under subsection (5).

(7)(b) Where a reportable seller does not provide the relevant information to the reporting platform operator then following the expiry of the time periods set out in subsection 7(c)(ii) the reporting platform operator shall –

1. either–
   1. withhold payment of consideration due to the reportable seller, or
   2. close the account of the reportable seller, and
2. prevent the reportable seller from opening a new account.

(7)(ba) Where a reporting platform operator has withheld payment of consideration under the provisions of subsection (7)(b)(i)(I) and the reportable seller still has not provided the relevant information within 24 months of the date referred to in subsection(7) (c)(ii) then the reporting platform operator shall

• pay to the reportable seller any consideration withheld,
• close the account of the reportable seller, and
• prevent the reportable seller from reopening the account until the relevant information has been provided.

(7)(c) A reporting platform operator shall not take any of the actions referred to in subsection 7(b) before –

1. the reporting platform operator has issued 2 reminders in writing to the reportable seller requested the necessary information, and
2. 60 days have passed from the second such reminder.

Appointment of a third party

(8) A reporting platform operator may, subject to the conditions relating to the appointment of a third party that may be contained in regulations made under subsection (9), appoint a third party to carry out the duties and obligations imposed on the reporting platform operator by section 891I.

Regulations

(9) The Revenue Commissioners are authorised to make regulations, with the consent of the Minister for Finance, to provide for the registration of platform operators with the Revenue Commissioners and specifying the information, regarding the relevant activities undertaken by reportable sellers on their platform, that is to be included in the return to be made by the reportable platform operators.

(10) Regulations to be made under subsection (9) shall:

(10)(a) Set out the period within which the requirements placed on platform operators by subsection (3) shall be satisfied.

(10)(b) Specify, in respect of a return required to be made under subsection (4):

1. the manner in which the return is to be made,
2. the currency in which the reporting platform operator is required to report, and
3. the rules for the conversion of amounts, denominated in a currency other than the currency in which the return is to be made, into that currency, for the purposes of making a return under subsection (4).

(10)(c) Specify the procedures to be put in place by a reporting platform operator for the purposes of identifying when a seller becomes a reportable seller as required under subsection (6).

(10)(d) In respect of the requirements imposed on the platform operators by subsection 7(b) specify the procedures to be followed and the requirements to be satisfied before a platform operator -

1. withholds payment of consideration pursuant to subsection (7)(b)(i)(I),
2. closes the account of a reportable seller and prevents a reportable seller from reopening the account pursuant to subsection (7)(b)(i)(II) or subsection (7)(ba),
3. prevents a reportable seller from opening another account pursuant to subsection (7)(b)(ii), or
4. pays any consideration pursuant to subsection (7)(ba).

(10)(e) Specify the records and documents that are required to be provided by the seller, who is not an excluded seller, to the reporting platform operator in order for the reporting platform operator to comply with the reporting obligations imposed on them by subsections (5)(b), (5)(c), (5)(d) or (5)(e).

(10)(f) Specify the records, obtained by the reporting platform operator under the provisions of subsection 10(e), that are required to be retained by the reporting platform operator.

(10)(g) Provide that a third party may be appointed by a reporting platform operator to carry out the duties and obligations imposed on the reporting platform operator by Section 891I or regulations made under subsection 9.

(10)(h) Specify, in relation to any of the matters specified in subsections 10(a), 10(b), 10(c), 10(e), 10(f) and 10(g), the manner in which the records shall be kept and the period the records are to be retained as provided for in the Directive.

(10)(i) Regulations made under section 891I may contain any such supplemental and incidental matters as appear to the Revenue Commissioners to be necessary to enable persons to fulfil their obligations under the regulations or for the general administration and implementation of the regulations.

Requirement to lay regulations before Dáil Éireann

(11) Every regulation made under section 891I must be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Authorised Officer

(12) The Revenue Commissioners may authorise, in writing, any of their officers to exercise any powers to perform any acts or discharge any functions conferred by section 891I or by the regulations made under subsection 9.

Audit

(13) An authorised officer may at all reasonable times enter any premises or place of business of a reporting platform operator for the purposes of-

1. (13)(a) determining whether information regarding a relevant activity -
   1. included in a return made under subsection (4) or regulations made under subsection (9) by the reporting platform operator was correct and complete, or
   2. which was not included in a return was correctly not included in the return,
2. (13)(b) examining the procedures put in place by the reporting platform operator for the purposes of ensuring compliance with that platform operator’s obligations under section 891I or regulations made under subsection (9).

(14) An authorised officer shall not, other than with the consent of the occupier, enter a private dwelling without a warrant authorising the entry.

District Court Warrant

(15) A judge of the District Court, if satisfied on the sworn evidence of an “authorised officer” that

1. (15)(a) there are reasonable grounds for suspecting that information or records, that the “authorised officer” may require for the purposes of his or her functions under this section, is or are held on any premises or part of any premises, or
2. (15)(b) the “authorised officer”, in the performance of his or her functions under this section, has been prevented from entering the premises or any part of the premises,

may issue a warrant authorising the “authorised officer”, accompanied by other persons if necessary, to enter, if needs be by reasonable force, at any time or times within 30 days from the date of issue of the warrant and on production of the warrant if so requested, the premises or part of the premises concerned and perform all or any of the functions conferred on the authorised officer under this section.

Penalties

(16)(a) The provisions of Section 898O shall apply to

1. a failure by a reporting platform operator to make a return required under subsection (4) or regulations made under this subsection (9), and
2. the making of an incorrect or incomplete return under subsection (4) or regulations made under subsection (9),

as it applies to a failure to deliver a return or to the making of an incorrect or incomplete return referred to in section 898O.

The penalty for the failure to make a return or for making an incomplete or incorrect return under section 898O is €19,045. A further penalty of €2,535 also applies for each day a return remains outstanding.

(16)(b) A penalty shall not be imposed on a platform operator under section 898O for the making of incorrect or incomplete returns where –

1. the platform makes an incorrect or incomplete return solely due to a reportable seller failing to provide the relevant information, and
2. the platform has complied with the obligations set out in subsection (7)(b), subsection(7)(ba) and any regulations under subsection (10)(d) with respect to the failure.

(16)(c) A penalty of €1,265 will apply to a person who does not comply with-

1. the requirements of a Revenue officer in the exercise or performance of the officer’s powers or duties under this section or regulations made under subsection (9), or
2. any requirement of the regulations made under subsection (9).

Anti-avoidance

(17) Subsection (17) is an anti-avoidance provision and provides that where arrangements are entered into by any person and the main purpose or one of the main purposes of the arrangements is the avoidance of any of the obligations imposed by section 891I or the regulations made under subsection (9), then the section and the regulations shall apply as if those arrangements had not been entered into.

Meanings of words or expressions

(18) A word or expression which is used in section 891I or in regulations made under subsection (9) and which is also used in the Directive has, unless the context otherwise requires, the same meaning in this section or in those regulations as it has in the Directive.

Interaction with Section 888 and Section 890 TCA 1997

(19) In order to avoid double reporting of information by the reportable platform operator the provisions of sections 888 and 890 TCA 1997 shall not apply to a reportable platform operator where that reportable platform operator has fulfilled their obligations under section 891I and regulations made under subsection (9).

Access to anti-money laundering (AML) information

(20)(a) Where an enquiry is in respect of a return which an authorised DAC officer believes –

1. (iii) should include details of the beneficial ownership of a financial account, or
2. (iv) the reportable seller is not the beneficial owner of the consideration paid, then the authorised DAC officer may access the mechanisms, procedures, documents and information referred to in –
   1. Articles 13, 30, 31, 32a and 40 of the AML Directive, and
   2. any provisions of the law of the State transposing the said Articles.

Access to registers

20(b) For the purposes of subsection 20(a) an authorised DAC officer –

1. shall have access to the Central Register of Beneficial Ownership of Companies and Industrial Provident Societies, The Central Register of Beneficial Ownership pf Irish Collective Asset-management Vehicles, Credit Unions and Unit Trusts, the Central Register of Beneficial Ownership of Trusts, and the Central Mechanism of Ownership of Bank and Payment and Safe-Deposit Boxes, and
2. may, by notice in writing, require a designated person to deliver information as is relevant to the compliance with any obligation imposed on that person by Chapter 3 of Part 4 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 that was retained by the designated person under section 55 of that Act.

(20)(c) The notice period provided for in subsection 20(b)(ii) should not be less than 14 days.

(20)(d) Where an authorised officer –

1. accesses the registers or information systems referred to in subsection 20(b)(i), or
2. serves a notice under subsection 20(b)(ii),

they shall notify the beneficial owner concerned.

(20)(e) The Data Protection Act 2018 will apply to the access given to an authorised DAC officer under subsection (20).

(20)(f) The registrars or equivalent of the relevant registers or information systems shall allow an authorised Revenue officer access to those registers or information systems.

(20)(g) An authorised officer may require additional information, explanations and particulars from a designated person for the purpose of inspecting the information delivered to the officer under paragraph (b)(ii).

Relevant Date: Finance Act 2024