Digital platform Operators, both resident and non-resident in the EU, are subject to new reporting obligations of income earned by sellers who use such platforms.
Law 13/2023 has amended, among others, the General TaxLaw to transpose Council Directive (EU) 2021/514 of 22 March 2021, amendingDirective 2011/16/EU on Administrative Cooperation ("DAC7").
It is about controlling the income obtained by independent sellers of the platform through the platform (it does not apply to companies that sell their products online, but to those that sell products or provide services through the platform - e.g. "market places".
The EU Directive regulates the exchange of information between tax agencies in the EU. To this end, platforms will have to (a)report to the tax agency on the income obtained by sellers on their platforms, and (b) comply with due diligence obligations - public consultation on implementing rules has been published.
Compliance with due diligence requires collecting the information, checking it and storing it under certain conditions required by the standard, which may be implemented, either by the platform or by a third party before December 31 of the year for which the communication ismade, i.e., in the case of the first reporting period. before December 31 of this year.
Reporting activities or"relevant activities".
- Rental of real estate – for residential use, commercial, parking spaces among others.
- Personal services.
- Saleof "goods".
- Rental of means of transport.
Information to be provided aboutsellers by platforms.
- The seller's details (name, company name, address, tax identification number and VAT number).
- Identification of the bank accounts in which payments and total consideration are received.
- Fees, commissions, or taxes withheld or charged from the seller.
- When the seller provides real estate leasing services: street address of the property and days in lease.
Important: foreign digital platforms will need to bepre-registered in one (1) EU Member State (those that are already identified for VAT purposes in a Member State under the new e-commerce regimes will do so through that State).
In Spain, census form 040 for registration, modification and de-registration in the register of unqualified foreign platform operators will be used, and forms for the declaration and automatic exchange of information, with the first declaration referring to 2023, which must be submitted by 31 January 2024.
The new regulations also establish, as a sanctioningregime, money fines and other measures until the closure of the seller's account on the platform or the precautionary measure in the census of theplatform itself.
All this is independent of the fact that VAT maintains its own rules, both substance and formal, also on digital platforms as suitable channels for the control of transactions carried out through them – infact, since July 2021, digital platforms have been included in the VAT management and collection system, or occupying in certain cases the position of taxable person instead of the seller, either by registering transactions or by making your information availableto the AEAT.
In this context, the EU Commission is also launching the VIDA initiative, which envisages by 2025 expanding the number of cases in which they must take the place of the seller as VAT taxpayers, e.g. holiday rentals, passenger transport in which they are involved.
Conclusion.
Considering the increasing complexity of these activities in the real economy makes it essential to carry out an accurate analysis of the applicable obligations, and to implement appropriate processes to complt with legal requirements and minimize inefficiencies that give rise to risks due to gaps or loopholes such as duplication.
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