21. December 2023 The upcoming turn of the year brings important changes for companies in Germany. From the beginning of next year (2024), the deadlines for registrations and notifications will apply. Compliance with these deadlines is crucial in order to fulfil legal requirements and avoid possible sanctions.
Find out in this blog post what is changing and which steps you should definitely keep an eye on from next year.
More and more sales are being generated via platforms worldwide. In order to ensure that all taxpayers bear their fair share of the tax burden, cooperation between the competent administrative authorities of the EU member states in the area of direct taxation is to be strengthened with the help of the DAC7 and the associated registration and reporting obligations.
The DPMG (Digital Platform Reporting Obligations Act) implements Directive (EU) 2021/514 on administrative cooperation (DAC7) by the Austrian legislator.
Relevant to whom?
The scope of application of the DPMG includes platform operators that have their registered office or place of management in Austria. A platform is defined as any software (including a website) that enables providers to connect with other users in order to directly or indirectly carry out relevant activities in return for payment (such as Willhaben, eBay or Amazon).
The following activities are defined as relevant in the DPMG:
- The letting and leasing of immovable property (real estate),
- Personal services,
- The sale of goods, as well as
- The rental of any means of transport.
In principle, platform operators from third countries are also subject to the DAC7 reporting obligation if they enable providers to carry out a relevant activity. However, they must not be resident for tax purposes in a third country or be registered under the law of a third country or have their place of management in a third country that has an agreement between the competent authorities that requires the exchange of equivalent information.
In future, entrepreneurs who use online platforms to offer their activities will be asked by the platform operators to share reportable information. This information will be transmitted to the tax authorities. If the tax authorities discover discrepancies when checking the information, it can be assumed that there will be an audit with regard to income and VAT reporting.
Exceptions
Platforms that offer or advertise the relevant reportable activities themselves exclusively for the processing of payments and redirect users to other platforms are exempt from the reporting obligation. This includes payment service providers (such as klarna, PayPal, Master Card or Visa), as well as online booking platforms and online shops that are operated by the platform operator for its own company.
State legal entities, listed companies and platform operators that have generated more than 2,000 lettings with an advertised property unit in the reporting period are also exempt.
Very small providers are also included in the exemption if they have made fewer than 30 sales of goods and the total amount of remuneration does not exceed EUR 2,000.
What needs to be reported?
Due to the reporting obligation, platform operators subject to the reporting obligation have to transmit the following data:
- Personal data of the provider (name, address, tax identification number)
- Financial account information of the provider
- States in which the supplier is established
- Remuneration paid or credited per quarter
- Fees, commissions or taxes withheld per quarter
- If the property is rented or leased, additional information must be provided for each property advertised.
- Address of the property
- Land register entry
- Type of object
- Number of days the property was rented or leased out
What are the deadlines?
The reporting period is the calendar year. The report must be submitted electronically to the tax authorities by 31 January of the following year at the latest. The first report must be submitted by 31 January 2024.
Penalties
A breach of the registration and reporting obligation can result in a fine of up to EUR 200,000 in the case of intent and up to EUR 100,000 in the case of gross negligence. The possibility of self-reporting with exemption from punishment is excluded.
We would be happy to advise you on this topic (info@artus.at).
PS: Please note, that we are no native speakers and that our blogposts were translated with the help of google translate.Â
