DAC 7: last call before the reporting deadline of 31 January 2024

What is it about?

From 1 January 2023, DAC 7 requires digital platform operators to collect information from sellers who offer physical goods or services for sale through their platform and carry out certain due diligence procedures. That information must be reported to the Belgian tax authorities if the platform is tax resident in Belgium. Although the reporting obligation lies with the platform operator, the information to be reported is the income earned by individual sellers using the platform.

Please note this is also about private sellers.

A platform operator who fails to comply or properly comply with the DAC 7 registration and notification rules risks fines.

Deadline of 31 January 2024

A platform operator must report the required information to the Belgian tax administration no later than 31 January of the year following the calendar year in which the seller is identified as a reportable seller. For example, if the seller is identified as a reportable seller during 2023, the reporting deadline is 31 January 2024.

Due diligence procedures must be carried out by 31 December of each reporting period. The year 2023 is the first reporting period. If a due diligence procedure has not been carried out on time, the vendor in question cannot be included in the reporting for the year in question. A correction will then have to be made in the following year.

FAQ dated 1 October 2023

Meanwhile, the Belgian tax administration published a set of frequently asked questions ("FAQ") in Dutch and in French. Important in this regard is that if a platform operator thinks it is excluded from the application, it must submit an application to that effect by 15 January 2024 for the 2023 reporting period.

How can BDO help?

We can assist your organisation in analysing whether the organisation is a platform operator with reporting obligations under DAC 7. For this purpose, we have developed an online tool. The assessment is done through a web-based questionnaire, based on a decision tree, which produces a detailed report.

We can also assist you with the reporting itself. This should be done via the DPI-DAC 7 e-service page of the FPS Finance.

Do not hesitate to contact one of our experts, Olivier Michiels, Alexandra Martin or Werner Lapage.