EU Member States have recently amended the Directive on administrative cooperation in taxation. Such amendments will need to be adopted by 31 December 2022, and will enter into force starting 1 January 2023.

Council Directive (EU) 2021/514 of 22 March 2021 (DAC7) extends automatic exchange of information to digital platform operators, providing tax authorities with the necessary information to enforce on them cross-border tax rules. Among the new rules, it’s been introduced an obligation for both EU and non-EU digital platforms to report revenues generated by their sellers; such information will then be automatically exchanged between Member States’ tax administrations.

Reportable activities include:

property rentals;
personal services;
sale of goods;
rental of any mode of transport.

Information to be reported are:

identification of the seller;
country of residence;
the seller’s profits or turnover;
bank account details;
details of property rented out.

DAC7 will also expand administrative assistance rules, introducing automatic information exchange on royalties, and the facilitation of joint audits.

SOURCE: www.eur-lex.europa.eu