Update 31/08/2023: The Commissioner for Tax and Customs notifies that Version 1.1 of the DAC 7 guidelines has been issued with updates to Section 6.1.
DAC 7 as implemented in Malta by means of Legal Notice 8 of 2023
The European Union Directive 2021/514/EU, updating the provisions of the Council Directive 2011/16/EU on administrative cooperation in the field of taxation, was transposed into Malta’s domestic legislation by means of Legal Notice 8 of 2023 (“DAC 7”).
The amendments that DAC 7 has introduced have sought to broaden the rules of the Directive on Administrative Cooperation (“DAC”) to cover the digital economy and have consequently extended the EU tax transparency rules to digital platforms (any software, including websites and applications).
As from 2023 onwards, reporting platform operators that connect suppliers of certain goods and services with users (“sellers”) to make available all or part of a platform, are required to report to the local tax authorities information in respect of both the platform operator and the reportable sellers. The list of the information to be reported is extensive, and ranges from the name of the seller, the tax identification number, the VAT number and business registration number. The reporting must take place by the 31st of January of the year following the calendar year in which the seller is identified as a reportable seller. Thus, reporting platform operations are required to file their first reports by 31 January 2024.
Furthermore, DAC 7 has introduced an automated information exchange system between the European Union tax authorities on taxable income generated by such reporting plattform operations and tax administrations will exchange the information reported between Member States by the end of February 2024.
Failure to adhere to the obligations introduced and imposed on reporting platform operations will result in effective penalties.
Should you require more information on DAC 7 reporting or assistance with establishing your reporting obligations, you are invited to get in touch with us on firstname.lastname@example.org and our team will guide you further.