DAC7: Some Thoughts on the Different Roles of Platform Operators and the Appropriate Definition of the Scope of Reporting Obligations

As from 2023 the Directive 2021/514/EU adopted on 22 March 2021 (DAC7) require platform operators to comply with due diligence and reporting obligations on the sellers offering goods or services via digital platforms. The article discusses the different roles that the platform operators may play from a business standpoint and reflects on the implications of such different roles for the purpose of appropriately defining the scope of DAC7 reporting obligations. In the author’s opinion, such scope should be defined attributing crucial relevance to the income reporting obligation with the platform operators for (accounting and) tax purposes. In this sense, in all cases where the platform operator is already required to disclose the overall consideration paid by the customer in its income tax return the reporting obligations laid under the DAC7 should not apply, as there would not be any risk of tax evasion. DAC7, platforms, platform operators, principal, intermediary, tax evasion, disclosed agent, undisclosed agent