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Common tax framework for digital platforms

Mar 31, 2021 | News

(31 March 2021) – The Council of the EU has adopted new rules to improve administrative cooperation in taxation, making digital platform operators report the income obtained by sellers.

© Pikist

The tourist accommodation platform Airbnb reacted to this adoption on Tuesday (30 March), saying in a statement sent to Lusa that it welcomes these new rules that would support a more coherent, standardised and international approach to information sharing on the income obtained through the platforms.

The new rules meet the challenges posed by the digital economy, adopted a week ago by the Council of the EU. It will come into force from 1 January 2023, covering digital platforms located inside and outside the EU (such as Facebook or Instagram).

A revision of the European directive on administrative cooperation in the field of taxation, from that date, means digital platform operators will have to report income earned by sellers on their platforms and for member states to automatically exchange this information.

According to the Council, the new rules will allow national tax authorities to detect income obtained through digital platforms and determine the relevant tax obligations. (EurActiv / Lusa)

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