The European Commission has adopted an Implementing Regulation concerning tax transparency and the criteria for information reported by platforms to non-EU countries and exchanged with Member States.
This Regulation establishes criteria for determining whether information automatically exchanged under an agreement between the tax authorities of Member States and a non-EU country is equivalent to mandatory automatic exchange of information reported by platform operators as specified in Council Directive (EU) 2021/514 including:
- Reporting Platform Operators
- Reportable Sellers
- Relevant Activity
- Due diligence procedures,
- Reporting requirements and procedures
Reporting Platform Operator (Article 2)
The Implementing Regulation states that where a non-Union jurisdiction does not consider as a reporting platform operator a Platform Operator that facilitates the provision of relevant activities for which, over the previous calendar year, the aggregate consideration at the level of the platform is less than EUR 1 million or less than an amount approximately equivalent to EUR 1 million in the local currency of that jurisdiction, a determination of equivalence shall only apply to reporting platform operators as defined in the national law of the relevant non-Union jurisdiction.
Relevant Activity (Article 4)
Where a non-Union jurisdiction does not include in its national law one or more of the relevant activities as defined in Section I, subparagraph A(8) of Annex V to Directive 2011/16/EU as a relevant activity, a determination of equivalence shall only apply to information in relation to a relevant activity as defined in the national law of that non-Union jurisdiction.
Due diligence procedures (Article 5)
Article 5 of the Implementing Regulation stipulates that when The Commission shall assess the due diligence procedures laid down in the national law of a non-Union jurisdiction and pursuant to an agreement between the competent authorities of a Member State and the non-Union jurisdiction to determine their equivalence with the due diligence procedures set out in Section II of Annex V to Directive 2011/16/EU and the definitions set out in Section I, subparagraphs C(3) to C(7), of Annex V to Directive 2011/16/EU
The full text of the Implementing Regulation can be found on this link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=PI_COM:C(2023)2352
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