On 22 March
2021, Council Directive 2011/16/EU (‘Directive on Administrative Cooperation’) was amended by
Council Directive (EU)
2021/514, extending the EU tax transparency rules to digital
platforms. The DAC 7 directive introduces an obligation for Platform Operators
to provide information on income gained by Sellers from Relevant Activities
provided through the Platform. Platform Operators are obliged to start
collecting this information from the 2023 reporting period and these
obligations cover both cross-border and non-cross border activities, as well as
extending to third country Platform Operators.
DAC 7 has been implemented into Maltese legislation by virtue of legal
notice L.N. 8 of 2023 which amended S.L. 123.127, entitled the Cooperation with Other Jurisdictions on Tax
Matters Regulations.
Guidelines
Guidelines on the Mandatory Automatic Exchange of
Information in relation to the reporting obligations of Platform Operators are
available here.