On April 9 the Council of Minister adopted a proposal dated 27 March 2024 to amend the Tax Information Exchange with Other Countries Act and certain other acts (“Proposal”) with a view to implementing EU’s DAC7 directive (Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation) on the reporting of information about sellers engaging in transactions via digital platforms.

Poland was required to implement DAC7 to a large part by 31 December 2022 and fully by 31 December 2023. Even though the implementation work began as early as 2022, it was not until now thar the Council of Minister has formally adopted the legislative proposal to be transmitted to the Sejm for consideration in parliament.

In accordance with the Proposal, the reporting obligation will apply to digital platform operators from UE and from outside EU. The obligation is to submit to the Head of National Revenue Information certain data about platform sellers and their transactions (sales of goods and services, including also provision of real properties or vehicles) so that the administration could gain knowledge about sellers and their incomes in different member states. The reporting will be required in one member state only, with the information to be shared with the others.

As regards fundamentals, the Proposal provides for:

  • the duty on digital platform operators to collect and verify information on sellers who sell goods or services via their digital platforms;
  • the duty on digital platform operators to submit monthly and annual reports with such information to the Head of National Revenue Information;

The reporting requirement will not apply to data on small sellers of goods, being those who have had fewer than 30 transactions of this kind during the year for a total consideration of not more than the equivalent of EUR 20K during the year.

  • automatic exchange of information about the sellers between tax administrations of relevant member states;
  • uniform CSR-compliant reporting format applicable to seller information to be reported by digital platform operators to tax administrations of relevant member states;
  • joint audits by tax authorities from different member states;

Joint audits are a new tool to facilitate exchange of information between states. A joint audit is an administrative enquiry jointly conducted by the competent authorities of two or more Member States, and linked to one or more persons of common or complementary interest to those authorities;

  • mechanisms for the protection of personal data of digital platform users and for preventing data breaches.

A digital platform operator who fails to duly comply with the reporting requirements will be liable to a penalty of up to PLN 1 million.

The new law is expected to enter into force on 1 July 2024, except that it will apply retroactively to the full year 2023 and on the year-to-date basis since 1 January 2024. Accordingly, to comply with the reporting duties, digital platform operators will have to collect seller data for one and half years back.

If this issue pertains to your business and you are interested in our assistance, please contact us.

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