The Council of the European Union has adopted new rules to revise the Directive on administrative cooperation in the field of taxation (DAC) – Council Directive 2011/16/EU. The amendments to the Directive (DAC7) create an obligation for digital platform operators to report the income earned by sellers on their platforms and for Member States to automatically exchange this information. The new rules cover digital platforms located both inside and outside of the EU and will apply from 1 January 2023 onwards.

These amendments to the DAC will allow national tax authorities to detect income earned through digital platforms and determine the relevant tax obligations.

Other amendments to the DAC will enhance the exchange of information and cooperation between Member States’ tax authorities. The new rules provide a framework for the competent authorities of two or more Member States to conduct joint audits. This framework will be operational in all Member States from 2024 at the latest.