On February 13, a draft law amending the act on the exchange of tax information with other countries and certain other acts was published. The draft law implements the provisions of EU Council Directive 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation (“DAC7”).
This is yet another draft in this matter. In the previous parliamentary term, the act aiming to implement DAC7 was not passed.
The draft law imposes a number of new obligations on digital platform operators, i.e. entities that contract sellers to make available all or part of a platform to such sellers. Pursuant to the published draft, platform operators will be obliged in particular to:
- provide the Head of the National Revenue Administration with data of the reportable sellers and
- comply with specific due diligence procedures (these procedures relate to, i.a., determining the status of sellers, their residence and reliability of the information obtained), also with regard to sellers who were registered on the platform as of July 1, 2024.
Information on the following activities ("relevant activities") will be reported to the Head of the National Revenue Administration:
- provision of real estate, share in real estate or parts thereof, including adjoining premises,
- provision of personal services, including time- or task-based work performed by a natural person acting for or on behalf of an entity via the platform at a user's request online or physically offline after its execution has been enabled via the platform,
- sale of goods,
- rental of modes of transport.
According to the draft, the information provided to tax authorities is to include, i.a., data identifying sellers (e.g., company’s name, TIN, VAT identification number) and:
- seller's financial account identifier (if available to the reporting platform operator),
- EU member state in which the reportable seller is resident,
- the total consideration paid or credited during each quarter of the reportable period and the number of relevant activities in respect of which it was paid or credited,
- any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period.
In the event that the seller performs activities related to the provision of immovable property, the information about the sellers should additionally include, i.a., the address of each property listing, number of entries in the land and mortgage register of all properties belonging to the property listing and the number of days each property listing was rented during the reportable period.
Sanctions
In the event of i.a.:
- failure to provide the Head of National Revenue Administration with information on sellers (unless the operator would have made appropriate summons and applied measures against the seller),
- application of due diligence rules and procedures, including gathering documentation,
- timely removal of irregularities identified as a result of an audit,
the platform operator will be subject to a fine, which may amount to up to PLN 1,000,000.
At the same time, the draft law provides that persons acting on behalf or in the interest of a reporting platform operator who fail to comply with the obligation to:
- apply due diligence rules and procedures, including gathering the required documentation and providing the Head of National Revenue Administration with information about the sellers,
- make a single registration in a selected Member State,
- eliminate irregularities indicated during an audit,
will be subject to a fine of up to 180 daily rates. Therefore, the maximum fine for the responsible individual may even exceed PLN 10 million.
In case of a minor offense, the perpetrator will be subject to a fiscal offense fine.
In case of operators from outside the EU, it will also be possible to revoke their individual registration number. Re-assigning such a number will require a deposit of PLN 1,000,000.
Entry into force
The new regulations will apply to entities that, at any time during the period from January 1, 2023 to June 30, 2024, met the conditions for recognition as a reporting platform operator. Whereby such reporting platform operator carries out:
- until December 31, 2024 the due diligence procedures - for sellers who were registered on the platform during this period;
- by January 31, 2025 the reporting procedures - in case of activities it has enabled reportable sellers to perform during this period.
In the above mentioned case, the following regulations will not apply, regarding:
- withholding of payment for the benefit of the seller until the seller provides the relevant information to the reporting platform operator,
- blocking the possibility to perform the relevant activity, carried out by the reporting platform operator, until the seller provides the information (in case there is no possibility of withholding the remuneration by this reporting platform operator).
Pursuant to the published draft law, it is to enter into force on July 1, 2024.
If you have any questions regarding the regulations at hand, please do not hesitate to contact us.
Autorzy:
