In a significant update to marketplace regulations, platforms are now required to report comprehensive seller data to tax authorities. This includes not only direct transactions but also those conducted indirectly, where sellers and buyers do not interact directly. The obligation extends to users who, despite not being registered, engage with the marketplace under an existing contractual agreement with the platform operator. This directive is in line with the OECD's Model Rules published in 2020, which aim to enhance transparency in digital transactions. The principle of law No. 3/E, released on October 3, 2024, clarifies these requirements following inquiries received through a formal request for interpretation. It underscores the necessity for platforms to report annually by January 31st, covering the previous year's activities. This includes transactions related to the rental of real estate, provision of personal services, sale of goods, and rental of any means of transport, involving sellers residing in Italy or another EU member state, or those providing real estate rental services in these regions. The national framework for this reporting obligation is established by Legislative Decree No. 32 of 2023, which implements the Dac 7 directive (EU Directive 2021/514). This legislation mandates the automatic exchange of information reported by platform operators within two months following the end of the reporting period. Importantly, the communications must also cover transactions not directly executed by the user-seller. This includes scenarios where the platform operator conducts sales in their own name on behalf of the seller, maintaining anonymity between user-sellers and user-buyers. Furthermore, the term 'registered on the platform' is interpreted broadly to include users who, while not having a specific account or profile, are in a contractual relationship with the marketplace operator.

Best Practices

• Ensure comprehensive data collection from all users, including those with indirect or contractual relationships.

• Implement robust systems for tracking and reporting transactions to meet annual deadlines.

• Maintain clear records of all transactions, including those conducted anonymously or indirectly.

  Insights

The expansion of reporting requirements reflects a global trend towards greater transparency in digital marketplaces. By aligning with international standards, such as the OECD Model Rules, jurisdictions aim to curb tax evasion and ensure fair competition.

Issues

• Complexity in tracking indirect transactions and ensuring accurate reporting.

• Potential resistance from users concerned about privacy and data sharing.

• Challenges in integrating new reporting systems with existing platform operations.

  Useful Tips

• Regularly update your platform's data management systems to accommodate new regulatory requirements.

• Educate users about the importance of compliance and the benefits of transparency.

• Collaborate with legal and tax experts to ensure adherence to all aspects of the regulation.

  Traps

• Overlooking the need to report transactions involving unregistered users with contractual ties.

• Failing to meet the annual reporting deadline, leading to potential penalties.

• Misinterpreting the scope of 'indirect transactions' and underreporting relevant data.