DAC-7 directive – new obligations for online sales from July 1, 2024

Directive DAC-7 includes transactions involving the sale of goods, the provision of services, the sharing of transportation means, and real estate. The main goal of introducing the directive is to identify individuals engaging in sales on a scale that may indicate regular business activity, especially when these individuals do not operate a registered business, and to level the playing field in the market.

Who must report online sales?

Online sales platforms are required to report, which includes software, websites or parts thereof, and applications, including mobile apps, available to users that enable sellers to connect with other users to perform, directly or indirectly, relevant activities for these users. This also includes arrangements for the collection and payment of remuneration for the performed activity. In Poland, the most popular online platforms subject to the reporting obligation include Allegro, OLX, and Vinted.

Reporting and thresholds

Platform operators are required to provide information to the Head of the National Revenue Administration about sellers who exceed certain thresholds, namely:

• 30 transactions

or

• €2,000 per year.

After exceeding these thresholds, the platform operator will be required to obtain from the user the data specified in the law, such as: name, address, VAT identification number, and information about the business conducted. This will allow for the identification of sellers making transactions outside of business activity (privately). If the user refuses to provide this information, the operator will block the possibility of making further transactions on the platform. Reporting will cover annual periods, and with the law coming into effect in July 2024, the first report will be submitted in 2025.

NOTE:
Reporting will cover transactions from January 1, 2023 – this is due to the fact that Poland introduced the regulations late. In practice, sellers who exceeded the statutory thresholds last year and simultaneously do not run a business may expect tax office inspections to clarify whether their income should have been taxed.

Directive DAC-7 – consequences for platforms and sellers

The Head of the National Revenue Administration (KAS) can inspect whether platform operators fulfill their duties regarding due diligence procedures and reporting obligations. In case of non-compliance, they face financial consequences – the Head of KAS has the right to impose a fine of up to PLN 1 million.

Importantly, sellers who do not operate a registered business but conduct transactions exceeding the statutory thresholds must also consider the consequences of the DAC-7 directive. In such cases, the tax office can verify whether the seller has properly accounted for the achieved income, and if not, it will have the right to demand payment of overdue taxes along with interest for late payment.

Legal basis:

– Article 1 point 25 of the Act of May 23, 2024, amending the Act on the exchange of tax information with other countries and certain other acts (Journal of Laws of 2024, item 879)
– Council Directive (EU) 2021/514 of March 22, 2021, amending Directive 2011/16/EU on administrative cooperation in the field of taxation (OJ EU 2021, L 104)

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