From 2023, the EU directive DAC7 will come into effect, which imposes an unprecedented obligation on digital platform operators (such as Allegro, OLX, Vinted or Booking) to automatically report seller transaction data to tax authorities. Does this mean the definitive end of untaxed online sales? We explain who and under what rules the National Tax Administration will scrutinise.

The sense of anonymity when earning extra income through online trading has come to an end. The threat of losing VAT payer status and multi-million euro fines will make tech giants the de facto first, automated line of tax control for the state.

Directive DAC7. The end of anonymous trading online

Dyrektywa DAC7 jest aktem prawnym Unii Europejskiej, który ma na celu zwiększenie przejrzystości i efektywności opodatkowania w erze cyfrowej. Wprowadza obowiązek raportowania transakcji dokonywanych przez cyfrowych pośredników sprzedawających towary i usługi. Główne cele dyrektywy DAC7 to: * **Zwalczanie uchylania się od opodatkowania:** Poprzez wymianę informacji między krajami członkowskimi UE, dyrektywa ma ułatwić organom podatkowym identyfikację osób i podmiotów, które mogą unikać płacenia podatków od dochodów uzyskanych na platformach cyfrowych. * **Zapewnienie równego traktowania:** Ma na celu stworzenie bardziej zrównoważonego pola gry dla przedsiębiorstw tradycyjnych i tych działających w internecie, ponieważ dochody generowane przez sprzedaż online, które wcześniej mogły być trudniejsze do śledzenia, będą teraz objęte obowiązkiem raportowania. * **Usprawnienie administracji podatkowej:** Dostęp do bardziej szczegółowych informacji o transakcjach cyfrowych pozwoli organom podatkowym na lepsze egzekwowanie przepisów podatkowych i skuteczniejsze zarządzanie dochodami podatkowymi. Dyrektywa DAC7 obejmuje platformy cyfrowe, takie jak rynki online, aplikacje mobilne czy platformy udostępniające mieszkania, które umożliwiają sprzedaż towarów lub świadczenie usług innym użytkownikom za wynagrodzeniem.

Directive 2021/514 (known as DAC7) was enacted by the EU Council as a powerful weapon to combat the global tax gap in the e-commerce environment. As justified upon its introduction: the rapid digital transformation meant that billions of euros in undeclared gross income from commercial activities were escaping across the continent – primarily from the sale of used goods, handicrafts, and short-term rentals.

In light of these regulations, a platform is any software or application (connecting buyers with sellers) within which systems operate to support the collection of remuneration for a transaction carried out (e.g. Vinted wallets, PayU on Allegro, Airbnb settlement systems).

Who do the reports concern? "Appropriate action"

Tax authorities are not interested in users who are merely scrolling through offers. Tracking mechanisms will be triggered when an operator detects that a user has performed a so-called "appropriate action", which is considered to be:

• Sale of goods (both professional shops and private sales from what is known as the 'second-hand market').
• Real estate rental or parking spaces (hitting the grey area of short-term rentals).
• Personal services (temporary work, online orders for freelancers, tutoring via portals).
• Hire of means of transport (cars, scooters, trailers)

However, services provided directly by the platform's employees for its own purposes are not covered by the reporting.

What data will go to the tax office clerk's desk?

To distinguish professional shops from amateurs getting rid of clothes from their wardrobes, a parallel EU regulation is being implemented – platforms are already forcing account creators to declare whether they are consumers or entrepreneurs. The scope of data sent to the Head of the National Revenue Administration (KAS) will depend on this status.

Private individuals (private sale)

Officials will receive giant datasets in an aggregated format, including among other things:

• First name, surname, main address, date of birth, and NIP number (or place of birth if no NIP is held).
• Bank account ID linked to the account.
• Total remuneration (gross) paid into the seller's account in a given quarter and information about platform fees collected.
• Number of transactions processed on the portal.

Legal persons and enterprises

For an e-commerce business, the dataset is extended with KRS/CEIDG numbers, VAT numbers, information about the possible existence of a foreign "permanent establishment" of the entity, and, of course, identifiers for financial flows and operator deductions.

The guidelines are extremely detailed for Property renters (Booking / Airbnb)In this sector, the platform will send officials the exact addresses of rented rooms, land register numbers, the number of days the property was actually occupied (rented out) in the year, and the total revenue generated for each address individually.

Draconian penalties for resistant platform operators

The National Revenue Administration has been given powerful instruments of pressure. If the user themselves does not fulfil the platform's data requirements concerning tax data (within 60 days), the platform is obliged to freeze their cash and block sales. It cannot cite the customer's best interests in this matter.

The Ministry of Finance foresees a ruthless tariff of fines for the portals themselves for any lack of loyalty to the National Revenue Administration (KAS):

• Failure to comply with reporting requirements or a lack of due diligence in tracking transactions risks a fine within the range from PLN 100,000 to an impressive PLN 5,000,000.
• Revocation of licence / identification number for business activity. To reobtain it, the portal will be compelled to pay a deposit to the KAS. worth one million zlotys.
• Administrative deregistration of the tech giant from the official VAT Register.