Attention, please make an appointment to go to any of our offices.

What is the DPI - DAC7?

Preamble

On 9 November 2022, by signing the multilateral agreement between competent authorities which activates the automatic exchange of information as regards income obtained from digital platforms, the Belgian authorities commit themselves to apply the model rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy (DPI).

The Council Directive 2021/514/EU of 22 March 2021 (DAC7) provides a new automatic and mandatory exchange of information reported by digital Platform Operators. It concerns here information with respect to income of sellers earned by their commercial activities (rental of immovable property, providing personal services, sale of goods and rental of any mode of transport) performed with the intermediation of digital platforms.

On 21 December 2022, Belgian authorities have approved the law regulating the obligations of digital platform operators and FPS Finance as regards information which shall be communicated to the competent authority of another jurisdiction within the framework of an automatic exchange of information with respect to operations performed with the intermediation of digital platforms, pursuant to Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation or Article 6 of the jointly developed OECD/Council of Europe Convention of 25 January 1988 on mutual administrative assistance in tax matters.

This law provides first for the obligations of digital platform operators:

  • to comply with the due diligence procedures described in the said law,
  • to gather the required information for each seller who is not an excluded seller,
  • to declare to the FPS Finance this information with respect to the sellers and their income earned by activities performed with the intermediation of digital platforms.

Then, this law also provides for that the platform operators located outside the European Union and which have no residence for tax purposes in a Member State and which are neither incorporated under the laws of a Member State nor has its place of management in a Member State and which do not have any permanent establishment in a Member State (“foreign” platform operators), but which facilitate the performing of an activity concerned by reportable sellers or an activity concerned consisting of the rental of immovable property located in a Member State, if they have decided not to register themselves in another Member State, register with the Belgian competent authority when they start their activity as platform operator or, at the latest on 31 March 2023, if they were already performing this activity before the law applies.

Besides, the Excluded Platform Operators, which have demonstrated upfront and on an annual basis that Platform’s entire business model is such that it does not have Reportable Sellers, must also register as such with the Belgian tax Administration.

Finally, this law provides for the obligation for the FPS Finance to exchange at the international level information reported in Belgium by platform operators. This exchange will take place within the framework of a new automatic and mandatory exchange of information for tax purposes.
 

Legal basis and administrative agreements

OECD

UE

BE