Oznamovací povinnost provozovatelů digitálních platforem je za dveřmi

New reporting obligation for digital platform operators is just around the corner

We keep you informed on the new reporting obligation for digital platform operators. Czech implementation of this new obligation has just been approved by the Chamber of Deputies (HERE).

The main objective is to extend the automatic exchange of information framework to include a new range of information reported by digital platform operators. Simply put, a platform is defined as a software that allows a seller to connect with another user to carry out defined reportable activities in return for consideration. These activities will generally be 4 strands of activities:

• Provision of immovable property, by all means of transferring the property for use by another, e.g. by renting, leasing or providing accommodation, where immovable property includes e.g. housing units, houses, agricultural land, parking spaces.
• the provision of a means of transport, e.g. cars, motorcycles, bicycles or scooters.
• personal service, which means an activity of an individual based on time or a task at the request of the user of the platform (e.g., the activity of cleaning, performing craft work, etc.).
• Sale of goods, which in practice may be e.g. various web-based marketplaces or e-shops that intermediate the sale of goods from other sellers.

The rules contain lots of exemptions from reporting platform operators or reportable sellers. As with other reporting obligations, the amended Act also introduces additional registration or notification obligations in this context, detailed due diligence procedures to identify and review sellers, and penalties for breaches of related obligations, for example.

Selected platform operators will be required to report information to the tax authorities once a year (always by 31 January) regarding the income generated by selected users of these platforms (sellers).

The year 2023 will be the first reporting period (i.e. in 2024).

If you have any questions, please contact the authors of this article or the EY tax team with whom you regularly work.

Author:

Karel Hronek