Cabot Transfer Pricing

DAC-7 implementation is starting to take shape. ANAF publishes the reporting form and an operator verification procedure11 October 2023

DAC-7 implementation is starting to take shape. ANAF publishes the reporting form and an operator verification procedure

The National Fiscal Administration Agency is moving forward with the secondary legislation necessary for the application of the European DAC-7 directive, the authority recently finalizing two orders necessary for the implementation of the new annual reports that will have to be made by digital platform operators starting in 2024. A few days ago, ANAF published – currently in public debate – the model of the declaration by which the reports will be made, after having already formalized since August a procedure for checking and notifying the operators who have such obligations by virtue of DAC-7.

The DAC-7 Directive focuses on the digital economy and has the main objective of providing information to tax authorities so that they can identify undeclared income obtained through online platforms and apply the appropriate taxes.

In Romania, the directive was transposed by OG no. 16/2023, which established that, from 2024, operators of digital platforms for the sale or rental of goods or the provision of services are obliged to collect and report detailed information about the transactions they facilitate.

The reports will be made annually, until the end of January, for the activity of the previous year, the first declaration of this kind being mandatory in 2024 for the year 2023. Non-reporting or late reporting may be sanctioned by the authorities with amounts between 20,000 and 100,000 lei.

Annual reports will include data on sellers registered on such platforms, regardless of whether they are natural persons or legal entities, there are only a few categories of users that do not need to be reported, including government entities, those listed on regulated markets or sellers for which the operator of the platform facilitated less than 30 activities and for which the total value of the sums collected did not exceed the value of 2,000 euros during a reporting period.

The secondary legal framework necessary for the implementation of the new obligations has advanced considerably, after ANAF published two orders regulating essential procedural aspects in reporting.

Therefore, ANAF put into public debate a few days ago the DAC-7 declaration, the one through which the operators of electronic platforms and marketplaces will have to make the actual reports on the activity and revenues generated by the sellers – legal or natural persons.

The new form will bear the code F 7000, will be completed electronically (PDF file with attached XML) and will have to be submitted annually online by January 31. The statement is informative (which means that it does not entail payment obligations) and will contain detailed information about the natural or legal persons who make transactions through the respective platforms. Among other things, their identification data will have to be reported (name or title of the seller, address or registered office, fiscal identification number, VAT code, registration number at the Trade Register), data about the bank accounts used if the platform operators have them, as well as information about the amounts obtained from the transactions or their number.

The DAC-7 declaration is still awaiting publication in the Official Gazette, but the matter is rather procedural, so it won’t take much longer for it to become official.

ANAF also published, also for the implementation of DAC-7, a procedure for verification and compliance of platform operators with regard to the new reporting obligations.

The procedure has already been formalized by Order no. 1226/2023, which appeared in the Official Gazette. Among other things, the procedure establishes that ANAF will check whether platform operators send complete and correct reports.

“Verifications regarding compliance with fiscal due diligence and reporting procedures are carried out both on the basis of the information reported by the platform operators through the form provided by the National Agency for Fiscal Administration, and on the basis of open information sources”, states ANAF in the published order.

If the tax administration finds that the operators have submitted incorrect or incomplete reports, it will notify them to correct the data, the model of the notification being also approved in the issued order. Platform operators will have 15 days to collect the necessary data from the date of communication, and failure to comply with this obligation may result in fines of up to 100,000 lei.

We remind you that the activities for which reports must be made include the rental of real estate (residential, commercial, as well as any other real estate 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.

 

Article published in TaxMagazine

Alina Andrei

Partener Taxe & Prețuri de transfer

Contact

Price Request