Denmark Updates 2024 DAC 7 Reporting Guidelines for Digital Platforms

The Directive on Administrative Cooperation (DAC), by Council Directive (EU) 2021/514, extended the EU tax transparency rules by introducing mandatory regulations for digital platforms, such as marketplaces, to collect, verify, and report information to Tax Administrations on reportable sellers using their platforms for certain businesses activities.

Since its adoption in 2021, DAC has been amended six times, so it is often called DAC 7, as the seventh version of the Directive. To help taxable persons better understand their obligations under DAC 7, the Danish Tax Agency updated the reporting guidelines for the 2024 calendar year.

Danish DAC 7 Reporting Guidelines

As stated in the guidelines, the mandatory reporting of income generated on platforms by sellers applies to sole traders who registered voluntarily as reporting platform operators and companies that operate digital platforms that allow users to sell goods, rent immovable property, or any type of means of transportation, and provide personal services.

The updated guidelines state that if digital platforms do not have any sellers that fall under the scope of reportable, they must file a so-called Zero report. Furthermore, the guidelines explain that digital platforms must notify the reportable sellers by January 31 about the information reported to the Tax Agency.

The guidelines provide crucial information on deadlines for submitting reports and re-reporting of reports requested by the Tax Agency upon completing the validation process of all information. Additionally, the guidelines state that the digital platform operators must immediately file a new report when they notice the previously filed one has errors.

The DAC 7 guidelines published by the Danish Tax Agency include a step-by-step explanation of the procedure for filing the corrected report and deleting incorrect information. 

Also, sections 3.1.2 to 3.1.5 of the guidelines contain the information that must be provided about each taxable activity that falls under the scope of reporting obligations.

Conclusion

Businesses that must file reports in Denmark under the DAC 7 regulation should familiarize themselves with the DAC 7 guidelines if they have not done so up to this point. Those who are already familiar with said rules should dedicate some time to understanding the novelties in the guidelines for the 2024 calendar year and determining if they somehow affect them.

Source: Danish Tax Agency