Foreign Platform Operator (DAC7)

Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC7) has established rules for the automatic exchange of information reported by Platform Operators, as defined therein.

DAC7 has been implemented in Italy through the Legislative Decree no. 32/2023, and the Provision of the Revenue Agency General Director of 20 November 2023.

As per DAC7, Reporting Platform Operator is any Platform Operators, other than an Excluded Platform Operator, who is in any of the following situations:

a) it is resident for tax purposes in a Member State or, where such Platform Operator does not have a residence for tax purposes in a Member State, it fulfils any of the following conditions:

1. it is incorporated under the laws of a Member State;
2. it has its place of management (including effective management) in a Member State;
3. it has a permanent establishment in a Member State and is not a Qualified Non-Union Platform Operator;

b) it is neither resident for tax purposes, nor incorporated or managed in a Member State, nor has a permanent establishment in a Member State, but facilitates the carrying out of a Relevant Activity by Reportable Sellers or a Relevant Activity involving the rental of immovable property located in a Member State and is not a Qualified Non-Union Platform Operator.

Non-Union Reporting Platform Operators (FPO) that have no nexus (residence for tax purposes, place of incorporation or place of management) with a Qualified Non-Union Jurisdictions need to register in a Member State in order to obtain the Individual Identification Number that univocally identifies them in any Member State.