EU Sends Notices to Member States Over DAC7 Violations
EU Sends Notices to Member States Over DAC7 Violations
The European Commission (EC) has sent warnings to Germany, Hungary, Poland, and Romania for not sharing information about income made through online platforms.
What is DAC7?
DAC7 is an EU regulation effective from 1 January2023.
Mandates online platforms (marketplaces, gig economy apps, rental services) to collect detailed income information of users.
Goal: Improve tax transparency and compliance across the EU, prevent tax evasion, and ensure fair taxation.
What Should Happen:
Data Collection: Online platforms must collect income information for 2023 and report it to their home country.
Data Sharing: By 29 February 2024, each country must share this information with other EU countries.
Germany, Hungary, Poland, and Romania missed the deadline to share this information. The EC has given them two months to respond and fix the issue. If they don't, the EC may take further action.
Stay tuned for updates!
