Management of platforms' reporting obligations

Find out everything about the DAC 7 directive, which imposes strict reporting obligations on digital platforms. Scope of application, types of transactions (rental of goods, sale of products, provision of services), deposit procedures, deadlines to be respected and sanctions in case of non-compliance. Ensure the fiscal transparency of your platform and avoid fines of up to €50,000.

Matchmaking Platforms: All you need to know about their Scope, the Operations concerned, the Filing Procedures, the Deadlines and the Sanctions

La DAC 7 directive marks a major evolution for digital platforms. Imposed by article 134 of the Finance Law No. 2021-1900 of 30 December 2021 of 30 December 2021 for 2022, it imposes reporting obligations strict to platform operators. In this article, you will find everything you need to know about its scope of application, the transactions concerned, the filing procedures, the deadlines to be respected and the sanctions incurred.

Scope of application of matchmaking platforms

The directive DAC 7 imposes new obligations on digital platforms to report the activities of sellers and service providers using their service. These obligations, codified in articles 1649 ter A to 1649 ter E of General Tax Code (CGI), are derived from EU Directive 2021/514 of 22 March 2021. The aim is to strengthen the administrative cooperation in tax matters and to combat tax evasion.

Operations affected by matchmaking platforms

Les platform operators must declare transactions made via their platform by sellers and service providers. Here are the main operations involved:

• Renting a property Of any kind
• Provision of services by natural persons
• Sale of goods
• Rental of means of transport

Platforms must therefore ensure that they report all these activities to the French tax authorities and inform users of the data sent to the tax authorities.

Procedures for filing the declaration

Les statements must be submitted electronically to the Directorate-General for Public Finances (DGFiP). The information to be transmitted includes in particular data relating to sellers and service providers, as well as details of transactions carried out via the platform. This data is crucial to ensure the fiscal transparency and prevent fraud.

Deadline: When to report?

Les reporting obligations apply to transactions carried out as of January 1, 2023. The first declaration must be made during the year 2024. It is therefore essential for platforms to comply now in order to avoid any sanctions.

It then applies every year (2024 with declaration before 1 January 2025).

Penalties provided for in case of non-compliance

In the event of non-compliance with reporting obligations, sanctions can be applied:

• Fine for filing late or for the absence of a declaration
• Fine for incorrect information or lack of mandatory information

The fines can be very high, up to 50,000€ in case of recidivism. In addition, lump-sum penalties may apply for breaches of due diligence obligations and the communication of data to sellers or service providers.

Conclusion

La DAC 7 directive imposes increased transparency obligations for digital platforms. Affected businesses should ensure that they fully understand the ambit, to respect the deposit terms and to prepare the statements to avoid financial sanctions important. For any questions about compliance, do not hesitate to contact a tax professional.

Our support offer for DAC 7 compliance

We offer a personalized support service to help you comply with the obligations of the DAC 7 directive. Our team of tax experts assists you at every stage: from the analysis of regulatory requirements to the preparation and submission of declarations. Contact us now for a free consultation and secure your compliance with complete peace of mind.

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