Reporting rules for digital platforms is the UK’s equivalent of the EU legislation (DAC7) that requires digital platforms operating in the EU and the UK to report the income of the sellers on their platform to tax authorities.
Platforms must also send this information to the seller, so they can see what is being communicated to Tax Authorities on their behalf. Platforms need to identify reportable sellers, perform their due diligence and inform the sellers when their information is being reported to the authorities to comply with their new reporting obligations.
What are the rules about?
The Organisation for Economic Co-operation and Development (OECD) Model Reporting Rules implemented in the UK on 1st January 2024, aim to:
• Assist tax authorities in identifying and addressing non-compliance
• Help sellers using digital platforms meet their tax obligations
Is this a new tax?
The Reporting Rules for Digital Platforms are not a new tax. Online sellers who already pay tax due on their sales don’t need to change what they’re doing.
Who is affected?
Sellers in the EU and the UK must pass a threshold of either EUR 2000 (approximately £1700) or 30 transactions a year to qualify as Reportable Sellers. Reportable activities include:
• The sale of goods
• The rental of a mode of transportation
• The supply of personal services
• The rental of immovable property
What information is being collected?
Digital platforms are required to collect the following information from their reportable sellers.
| Individual / Sole Trader | Company Seller |
|---|---|
| First name | Legal name of company |
| Last name | Primary registered business address |
| Middle name (if provided) | UTR (based on residing jurisdiction) |
| Primary residential address | Company registration number |
| NINO (based on residing jurisdiction) | |
| Date of birth | |
| Additional available TINs | |
| The jurisdiction of residence | |
| Total Consideration paid or credited to the seller during the reportable period (broken down into financial quarters) | |
| The number of relevant activities undertaken | |
| Any fees, commissions, or taxes withheld or charged by the RPO | |
| Financial account identifiers relating to the payment/credit | |
| Name of account holder if different from seller being reported | |
| Any available information relating to the above (as listed above) | |
What happens if I don’t submit the right information?
You may be at risk of having your seller account suspended.