First DAC7 report is due – what needs to be done at the turn of the year?

The deadline for the first DAC7 report (report according to DPMG (Austrian Digital Reporting Requirement Act)) is 31 January 2024. Just before the holiday season starts, we would like to inform you once again about upcoming deadlines and the most important to-dos that still need to be done.

Deadlines and immediate need for action

The DAC7 report has to be submitted to the Austrian tax authority by 31 January 2024 via the web portal for digital platforms as a structured XML file. However, you must fulfil various information and due diligence obligations prior to reporting:

• Information obligation: Platform operators must inform the sellers operating via the platform in advance of the existence of the DAC7 reporting obligation (so-called “abstract information obligation”). If information about a seller is included in the DAC7 report, this seller must also be informed of the specific information relating to the seller that is reported (so-called “specific information obligation”). The information to the seller regarding the data reported about them must be provided in good time before the report is submitted so that the seller can safeguard his data protection interests.
• Due diligence obligations: In addition, the procedures for fulfilling the due diligence obligations (in particular the collection and plausibility check of seller-related data) must be completed by 31 December 2023. Therefore, reporting platform operators must be able to assess at the beginning of January 2024 which seller-related information is still missing or inconsistent in order to be able to send the corresponding reminders and take enforcement measures in good time.

Do I need to take action if another platform operator does the reporting for me?

If a platform has several operators (e.g. in group constellations), it is generally possible for only one of the operators to submit a DAC7 report with all data. However, there is still a need for action for the exempt Austrian platform operators:

• Submission of exemption notification: Even if another platform operator (e.g. headquarters in another country) submits the DAC7 report for the Austrian platform, the exempt platform operator must submit a so-called exemption notification to the Austrian tax authority by
  15 February 2024, which shows that the information to be reported was submitted on time.
• Information and due diligence obligations: The submission of the DAC7 report by another platform operator does not exempt from the fulfilment of the information and due diligence obligations (see above). These must be fulfilled by the exempt platform operator itself. However, it is possible to outsource the fulfilment of due diligence obligations to third parties (e.g. the reporting platform operator based abroad). In any case, however, the fulfilment of the information obligations (abstract and specific) remains with the exempt platform operator.

How we support you in terms of the report

You can find details on the DAC7 reporting obligation as well as on the PwC DAC7 XML generator program, a customized tool for platform operators for your DAC7 report on our DAC7 website. You can also view a recording of our last DAC7 webcast from 15 December 2023 as well as our DAC7 brochure. We are happy to support you with our reporting solution or with questions about the reporting obligation and keep you up to date on current developments.

Author: Sophie Schönhart