The Council of Ministers has approved the bill to amend the General Tax Law in order to make effective the EU requirements regarding DAC 7, relating to cooperation in the field of taxation. The main novelty of the regulation is the obligation to exchange information obtained through the operators of digital platforms with the other countries of the European Union, in order, as indicated by the Ministry of Finance, to “improve administrative cooperation in the EU and expand collaboration to new areas to address the challenges posed by the digitization of the economy and help tax administrations to collect taxes more efficiently.”
Likewise, the standard not only transposes DAC 7, as provided for in the initial text, but also implements the Multilateral Agreement between Competent Authorities for the automatic exchange of information on income obtained through digital platforms within the OECD, which has already been signed by Spain.
Apart from the regime of the new information obligation of platform operators, the transposition of DAC 7 generates the need to modify this General Tax Law in different aspects. Thus, the regime of joint inspections and certain specific issues of the presence of officials from other Member States in Spain and vice versa are regulated, and simultaneous controls are implemented. Likewise, to facilitate the practical development of the joint inspections, the Spanish Tax Administration and the participating Member States must previously agree and coordinate them, for which a representative of the Spanish Administration will be appointed.
Specifically, the operators must apply due diligence procedures in relation to certain information from the ‘sellers’ that will be subject to the communication of said data, which must be verified, with special importance being given to clarifying the ministry of the seller. Once this information has been obtained by the operator, he must provide it to the Spanish Tax Administration, and for this he must be registered in the census before it.
Exempt from the obligation to inform
The transposition contemplates that some digital platform operators are excluded from this obligation to inform. These are those who can demonstrate that the information has been communicated by other operators and those considered as ‘qualified platform operators outside the Union’, that is, those registered in non-European jurisdictions according to which such information is limited to Member States. The bill also provides for a specific penalty regime.
Information to be communicated
The new regulation points out that the operator of digital platforms must communicate various data related to economic activities, called “relevant activities”, in which the operators mediate through the digital platforms they manage, putting in contact the sellers of goods or providers of certain services and users of said platforms. In this case, there is a series of sellers excluded from this information, such as entities considered public administrations and listed entities.
Likewise, those activities expressly determined by DAC 7, which are leasing and temporary assignment of real estate and means of transportation, personal services and sale of goods, will be subject to the provision of information. In addition, data such as the identification of the agents must be provided; developed activities; consideration paid to the seller and identification of the accounts used to collect it; taxes, commissions, rates and other amounts retained or collected by the operator, among other data.