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New European rules tax digital platforms

New European rules tax digital platforms
New European rules tax digital platforms

Today in Brussels the European Council adopted new rules to strengthen administrative cooperation in the area of ​​taxation, including sales through digital platformsA statement by the Council of Europe said that the measures adopted aim to improve administrative cooperation in the field of taxation and to address the challenges posed by the economy of digital platformsA large and growing number of individuals and companies are using digital platforms to sell goods or provide servicesHowever, income earned through digital platforms is often not reported and taxes are not paid, especially when digital platforms operate in many countries.

This results in member states losing tax revenue and gives digital platforms an unfair advantage over traditional companiesThe amendments aim to address this issue with a commitment for digital platform operators to report the income sellers are making on their platforms and for member states to share this information automatically.

The new rules cover digital platforms both inside and outside the European Union and will apply from January 1, 2023 onwardsIt will allow national tax authorities to discover the income earned through digital platforms and define related tax liabilitiesCompliance will also become easier for digital platform operators as reporting will only be done in one member state according to a common EU frameworkFurther amendments to the directive on administrative cooperation in the field of taxation would lead to improved information exchange and cooperation between tax authorities in member statesIt will become easier to obtain information on taxpayer groupsThere will also be improvements in the rules for implementing concurrent controls and allowing officials to be present in another member state during an investigationIn addition, the new rules provide a framework for the competent authorities of two or more member states to conduct joint auditsThis framework will be operational in all member states from 2024 at the latest

New European rules tax digital platforms
New European rules tax digital platforms

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