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This article will answer the following questions:
- How much time does the seller have to provide the data required by DAC7 to the platform operator?
- Since when have digital platform operators had to collect sellers’ data?
- What are the penalties for platform operators for failing to provide information about the seller to the tax authorities?
In order to fulfil the reporting obligation imposed by the EU DAC7 Directive, a digital platform operator must collect a large amount of data on sellers using the platform made available by the operator. Most often, to obtain such information, they must ask the sellers themselves to provide it. However, in business transactions, there may be situations in which the platform operator will not be able – for various reasons – to obtain all the data. What should such an entity do in this case to avoid problems? Do the provisions of Polish law offer any solutions in this regard?
What actions should the digital platform operator take if they do not have all the data of current sellers?
The issues related to the collection of information about sellers are regulated in Article 75o of the Polish act.
As a rule, in order to collect information about the seller, the platform operator is obliged to request the seller to provide the necessary information no later than on the day that seller meets the requirements for being treated as an active seller.
If the platform operator does not receive the information from the seller within 20 days of making the request, they must, in accordance with the regulations, apply for this information again. If, after this repeated request, the platform operator still does not receive the necessary data, they are obliged to immediately request it again.
The platform operator is therefore obliged to repeat the request for information from the seller twice. These requests should be made at 20-day intervals.
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If the seller, despite receiving two reminders, does not provide the platform operator with the information required by law within 60 days of the initial request, the platform operator is obliged to withhold the payment of consideration to the seller (until all necessary information is obtained from the seller). If it is not possible to withhold the payment of the consideration, the reporting platform operator blocks the possibility to perform a particular action until the information is provided by the seller.
Unfortunately, it should be taken into account that collecting information from sellers may take up to 60 days.
What actions should the platform operator take if they do not have all the data of former sellers?
First of all, let us point out that – in the case of reporting of information for 2023 – the transitional provisions of the Polish act provide for certain exceptions.
According to the current wording of the Polish act, from 1 January 2023 until the date of entry into force of the act, the rule that requires operators to block sellers from performing relevant activities and withhold the payment of consideration to them does not apply.
Moreover, if the platform operator has evidence that they have unsuccessfully asked sellers for information (or it was not possible to contact the seller), they are not subject to a fine for failing to provide information about the seller to the tax authorities.
In such a case, the Polish tax authorities do not initiate proceedings regarding a fiscal crime or offence.
Since when have digital platform operators had to collect sellers’ data?
The Polish act provides that digital platform operators who at any time – in the period from 1 January 2023 to the day preceding the date of entry into force of the act – met the conditions to be considered reporting platform operators, will have to complete:
- due diligence procedures – until 31 December 2024;
- reporting obligations – until 31 January 2025.
This means that the information about sellers for 2023 will also be subject to the reporting obligation.
Therefore, it is worth starting to collect information about sellers – especially considering that the platform operator is obliged to ask sellers for information several times.
