On October 3, 2024, the Italian tax authorities published Law Principle no. 3/2024 in order to clarify the perimeter of application of the concepts of ‘platform’ and ‘vendor’ referred to in Legislative Decree no. 32/2023, which implemented Directive no. 514/2021 (the so-called ‘DAC7’) in Italy.
When it comes to ‘DAC7’, reference is made first and foremost to EU Directive no. 514/2021 (but, in a broader sense, also to national legislation) that regulates the procedures for the automatic exchange of information by operators of digital platforms, as part of the broader programme of cooperation between EU tax authorities aimed at combating tax evasion with reference to online activities (the acronym ‘DAC’ means, in fact, ‘Directive on Administrative Cooperation’).
The DAC7 aims, in particular, to contrast tax fraud, evasion and abuse facilitated by the rapid digitalisation of the economy. This Directive aims to ensure, through the exchange of information concerning entities that make use of digital platforms to carry out certain specifically identified activities, that income generated through such platforms is properly identified and reported to the relevant tax authorities.
