Insights

Luxembourg: New mandatory automatic exchange of information rules for Digital Platforms "DAC7"

Keith O'Donnell 23 Jul 2020

On 15 July 2020, the EU Commission published a directive proposal (the “DAC7 Proposal”), amending, for the 6th time, Directive 2011/16/EU on administrative cooperation (the “DAC”) in the field of taxation.

On 15 July 2020, the EU Commission published a directive proposal (the “DAC7 Proposal”), amending, for the 6th time, Directive 2011/16/EU on administrative cooperation (the “DAC”) in the field of taxation. The DAC7 Proposal is part of the EU Commission’s Tax Package that aims to ensure that the European tax policy supports Europe’s economic recovery and long-term growth following the COVID-19 crisis.

 

The DAC7 Proposal aims to extend the scope of automatic exchange of information to digital platforms by placing an obligation on them to report on the income earned by sellers of goods and services who make use of the relevant platforms. It introduces new reporting obligations for platforms acting as “digital intermediaries” like CRS and DAC6 place obligations respectively on financial or tax intermediaries.

 

The DAC7 Proposal also includes clarifications and improvements of the existing rules on administrative cooperation and introduces notably, for that purpose, a definition of the “foreseeable relevance” required for an information request.

 

Discover more: New mandatory automatic exchange of information rules for Digital Platforms “DAC7”

 

 

Thank you for downloading

For similar content to our Global Guide, subscribe to our mailing list and keep up to date.

* indicates required
Crosshairs Icon

Article tags

Coronavirus | COVID-19 | DAC 6 | EU | Luxembourg | Pandemic

Hands on Keyboard

Newsletter

Keep up to date with news, views and updates from Taxand.

Sign-up now »

Search