DAC 7 - Automatic Exchange of Information Reported by Platform Operators

Legal Overview:

One of the main amendments affected through DAC 7, is the revision of the DAC by extending AEOI obligations to Digital Platform Operators.  Due diligence and reporting requirements are made mandatory for both EU and non-EU platform operators, further to which certain factual and financial information of reportable sellers is required to be shared with the tax authority where such platform operators are resident for tax purposes or are incorporated, managed, or have a permanent establishment in an EU country.  To ensure simplification and reduce compliance costs, the Directive provides specific criteria which enable these platform operators to report in only one EU country. Digital Platform Operators encompass those which operate a Platform (being any software, such as websites and applications including mobile applications), which allow their Sellers (not being employees of platform operator or of its related entity) to connect to users for the purpose of undertaking a Relevant Activity.  The types of ‘Relevant Activity’ (both domestic and cross border), reportable for the purposes of DAC 7include: the rental of real estate, the provision of personal services, sale of goods and the rental of any mode of transportation.

DAC 7 came into force on 21 March 2021, whereby Council Directive 2011/16/EU (‘Directive on Administrative Cooperation’) was amended by Council Directive  (EU) 2021/514, extending the EU tax transparency rules to digital platforms. DAC 7, was then implemented into Maltese legislation on 20^th January 2023, by virtue of L.N. 8 of 2023,  which amended S.L. 123.127, entitled the Cooperation with Other Jurisdictions on Tax Matters Regulations.

DAC 7 Registration:

Platform Operators who satisfy the classification prerequisites of a RMPO, as set out in Section 2.4.1 of the  Guidelines in relation to the DAC 7 reporting obligations of Platform Operators, are to register with MTCA through this Registration Page.

Those digital platforms, who classify themselves as ‘Excluded Platform Operators’, must still register with MTCA and provide proof of such classification.

Newly registered Platform Operators are obliged to register with MTCA within two (2) weeks of the commencement of their activities. This also applies to Excluded Platform Operators.

DAC 7 Submissions:

Platform Operators may refer to the below listed technical specifications to integrate their IT systems to the MTCA’s reporting portal.

A RMPO must report the information set out in the DAC 7 requirements to the Competent Authority in Malta within MTCA with respect to the Reportable Period, on an annual basis no later than 31st January of the year, following the calendar year in which the Seller is identified as a Reportable Seller.

Guidelines:

For further guidance on the above, kindly refer to the  Guidelines in relation to the DAC 7 reporting obligations of Platform Operations (Version 1.3) 

Contact:

For further information kindly contact us at address at [email protected].