The new obligations of digital platforms
From 1st of January 2024, with the approval of the Cooperative Administration Directive (DAC7), significant changes have been introduced in online taxation, especially on trading platforms. These modifications aim to improve transparency and tax collection, directly impacting sellers who market through platforms such as Airbnb, Wallapop, Ebay, Vinted, and others alike.
From now on, these platforms have the responsibility to report to the Spanish tax authorities on various transactions carried out by independent sellers on their platforms. These operations are rentals (residential, commercial, and parking), vehicle rentals, sale of goods and provision of services.
There are exemptions for small sellers. According to the regulations, platforms should not provide information if the seller has conducted fewer than 30 transactions and has earned less than 2,000 euros during the year.
The reporting obligation is limited to independent sellers on the platforms, excluding employees of the platform. The regulation covers all sellers residing in European Union Member States or those who provide rental services for properties located in the European Union.
From the seller’s perspective, it is important to be aware of this new regulation applicable to platforms, given the discussed sales thresholds are exceeded, the tax authorities will be aware of the sales made, and will expect the taxpayer to settle in their Income Tax Return (IRPF) the capital gain or loss generated by said sale.
On the other hand, it should also be noted that, depending on the recurrence and volume of such sales, the tax authorities could understand that these sellers engage in an economic activity, so it would be necessary to register as such and pay the corresponding Income Tax Return (IRPF) on the income obtained.
In summary, these changes are proposed in order to ensure greater European tax transparency in transactions carried out through online platforms, ensuring that generated revenues are properly declared. It is essential for sellers to be aware of these new obligations to avoid potential tax consequences.
