January 31, the first reporting deadline on DAC-7. Compliance guide for digital platform operators15 January 2024
The legal framework for the implementation of DAC-7 was recently completed, after ANAF also published the form required for the operators of electronic platforms and marketplaces to declare to the Fiscal the activity and revenues generated by sellers through them. The new declaration entered in the fiscal circuit carries the code F 7000, it is completed in electronic format and must be submitted for the first time by the end of this month, in order to reflect the activity from the year 2023. The form will report in detail the economic activities on the market-places or electronic platforms, carried out by natural or legal persons, for the sale or rental of goods, as well as for the provision of personal services.
ANAF introduced the F7000 form, a key tool for adapting Romanian tax legislation to the digital economy, in accordance with the European Directive DAC7, taken over in the Fiscal Procedure Code by OG 16/2023. The new form, intended for operators of online platforms, aims to ensure fiscal compliance and transparency of economic activities carried out digitally, improving the tax collection process for economic activities carried out through online platforms.
Given that non-reporting or late reporting may be sanctioned by the tax authorities with amounts between 20,000 and 100,000 lei, it is essential for online platform operators to be aware of these requirements imposed by completing the new tax form and to ensure that their reporting is complete and accurate.
Which platforms must report by the end of January
Among the platforms covered by DAC7 are marketplace platforms, where products and services are sold, car sharing platforms (those that provide users with car rental services), hotel rental platforms, live streaming applications or platforms that provide access to online courses or any other types of events. Be careful, however, because the definition of a platform is quite broad, encompassing various types of software, including websites, mobile applications and other media that facilitate connections between sellers and users to conduct economic activities. Each entity operating such a platform or any other type of arrangement that allows for the collection and payment of consideration for carrying out an activity considered relevant from a DAC7 perspective should consider very carefully whether it has DAC7 incidental obligations and take prompt compliance steps.
The only digital platforms excluded from reporting are those that are limited to processing payments, listing or promoting activities, or redirecting users to other sites.
What activities must be reported
Relevant reportable activities include: rental of immovable property (residential, commercial, as well as any other immovable property and parking spaces), personal services (services involving time-based or task-based work, provided by one or more persons and carried out at the request of a user, either online or physically, offline), the sale of goods or the rental of any means of transport.
Both cross-border and domestic activities will be included in the reports.
However, there are also certain exceptions, such as governmental entities or those listed on regulated markets, as well as entities that exceed certain activity thresholds (entities for which the platform operator has facilitated more than 2,000 real estate rental activities, nor those for which the platform operator platform facilitated less than 30 activities consisting of sales of goods and for which the total value of the consideration paid did not exceed the value of 2,000 euros during the past year)
Reporting through Form F7000 will be done annually, by January 31, for the previous year’s activity. The first reporting is scheduled for January 31, 2024, regarding the intermediated activities in 2023.
The F7000 form is completed electronically and transmitted through the ANAF portal in the form of a PDF file with attached XML, electronically signed. For transmission, platform operators must hold a qualified digital certificate. The statement is informative, which means that it does not entail any payment obligations.
The Order approving it (ANAF Order no. 1996/2023) states that any changes to the F7000 forms will be communicated to operators at least 15 days before their application, so before submission it is important that operators check the ANAF page for to ensure that they always submit the form in its updated version.
Information to be reported and corrections that may be made
Platform operators are required to report detailed information about reportable sellers, including names, addresses, TINs, VAT codes and other relevant data, for both individuals and legal entities.
A first category of data that must be declared is that which allows the identification of the platform and the reportable sellers. Thus, to identify the platform, operators must provide the name, address of the registered office, Fiscal Identification Number (NIF) and the commercial name of the platform. To identify reportable sellers, operators must declare for natural persons: name, surname, main address, TINs, place of birth (in the absence of TIN), VAT code (if any) and date of birth, and for legal entities: legal name, main address, NIFs, VAT code, registration number in the Trade Register and, where available, permanent establishments where relevant activities are carried out, indicating each member state.
Operators are then required to report a range of financial information relating to sellers who conduct business on their platforms, including: the identification number of the bank account where the seller collects his income, the name of the account holder, if it is different from the seller’s name, the consideration the total and number of relevant activities for each quarter of the reporting period, as well as any fees, commissions or taxes withheld or charged by the operator.
For real estate rental activities, there is a specific set of data that must be reported: the address of each listed property and, if available, the land register number or its equivalent, the total consideration and the number of rental activities for each listed property, in each quarter, as well as the number of days for which each real estate was rented during the reporting period and the type of each real estate.
From the perspective of correcting the declared data, the legal framework allows two types of corrections: either the modification or completion of some information originally transmitted, in the situation where it was reported incorrectly or incompletely, or the cancellation of some initially transmitted data.
These corrections of the transmitted information may be initiated by the operators or may result from ANAF requests (either as notifications or as measures ordered after a tax audit has been carried out).
Article published in TaxNews.ro
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