The government approved an amendment to the Act on International Cooperation in Tax Administration. The proposal implements the EU Council Directive on administrative cooperation in the field of taxation, the so-called DAC Directive 7, which responds to the dynamically changing conditions in the field of digital platforms.
The amendment provides for closer international cooperation and the possibility of conducting joint tax audits with the participation of the tax authorities of several EU Member States. It aims to modernize and streamline international cooperation in tax administration, especially in the context of strengthening the role of shared platforms and digitizing the economy. At present, the tax administrations of the EU Member States do not have enough information to be able to correctly assess the tax on income from business activities carried out through digital platforms such as Liftago, Airbnb, Uber, Bolt, etc.
DAC 7 specifically targets four areas of digital business:
- provision of immovable property (residential immovable property, business immovable property, parking spaces, flats or any other immovable property or parts thereof),
- provision of a means of transport (possibility of using a means of transport without a driver, as the provision of a transport service by a driver is a personal service),
- personal service (the work of a natural person based on time or task, regardless of whether the service is provided in an online or physical environment),
- sale of goods (goods and animals are considered to be goods).
The amendment also introduces the obligation for companies to report selected information for the past calendar year by 31 January, such as the identification of the seller (platform user) and their income and expenses in connection with the use of the platform. The information thus notified will be automatically transmitted to the competent authorities of the State within two months of the end of the notified period.
Source Mfcr.cz
