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European Commission Takes Action to Ensure Complete and Timely Transposition of DAC7 — Orbitax Tax News & Alerts

The European Commission has issued a release on actions taken to ensure the complete and timely transposition of EUR directives. Among others, this includes letters of formal notice to 14 EU Member States that have not notified or only partially notified their transposition of DAC7.


Non-transposition of EU legislation: Commission takes action to ensure complete and timely transposition of EU directives

The Commission is adopting a package of infringement decisions due to the absence of communication by Member States of measures taken to transpose EU directives into national law. The Commission is sending a letter of formal notice to those Member States who have failed to notify national measures transposing directives, whose transposition deadline expired recently. In this case, there are 25 Member States who have not yet notified full transposition measures for four EU directives in the fields of taxation and customs union, justice and public health. Member States concerned now have two months to reply to the letters of formal notice and complete their transposition, or the Commission may decide to issue a reasoned opinion.

Tackling tax evasion: new rules for administrative cooperation between tax authorities in the context of use of digital platforms by taxpayers

In March 2021, the Council adopted an amendment to the Directive on Administrative Cooperation (Directive (EU) 2021/514 – DAC7). Under DAC7, digital platforms such as websites and mobile apps, which allow taxpayers to sell goods, offer online and offline personal services, or rent out immovable property or means of transport, have to report those taxpayers and their economic activities. This information will help tax authorities in the Member States of those particular taxpayers to prevent tax evasion or misreporting through the use of digital platforms. All Member States had to transpose the Directive into their national legislation and inform the Commission thereof by 31 December 2022. The following Member States have not notified or only partially notified the national measures transposing DAC7 and are receiving today a letter of formal notice: Belgium, Estonia, Greece, Spain, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovenia.