Belgian FAQ on DAC7 for digital platform operators

The Belgian Tax Authorities published an FAQ to provide guidance on the application of the DAC7 rules in Belgium. DAC7 ( Council Directive (EU) 2021/514 of 22 March 2021 ) introduced new reporting obligations to digital platform operators as from 1 January 2023 and was transposed into Belgian legislation by Law of 21 December 2022.

The new Belgian FAQ addresses the question which digital platform operators must report and provides guidance on the meaning of “seller”, “reportable activity” and “reportable information”. It also elaborates on the due diligence process and the submission requirements. Furthermore, it provides more insights on the application of penalties. 

The Belgian DAC7 introduces due diligence and reporting obligations for Belgian platform operators (incl. certain platform operators from outside the EU). The due diligence obligation encompasses the requirements of data collection and verification regarding sellers. Hereby, also the maintenance of a register is required to record the steps taken and information utilized to ensure compliance. The reporting obligation entails the disclosure of specific information to the Tax Authorities about sellers, including the filing of a zero-return when there is no reportable information for a specific period. Additionally, it also entails the requirement to share the reportable information with sellers. The Belgian Tax Authorities have a dedicated webpage to share information about the technical requirements and compliance aspects of DAC7. 

A platform operator must complete the due diligence procedures generally by 31 December of each calendar year of its operations. For the first reporting period, however, an extension applies until 31 December of the second reporting period. This applies with respect to sellers which were already registered on the platform on 1 January 2023, or on the date when an entity first qualifies as a reporting platform operator. The "first reporting period" is the calendar year in which the conditions for being a reporting platform operator are met for the first time. The "second reporting period" is the calendar year following the first reporting period (i.e., following the year in which the conditions for being a reporting platform operator were met for the first time). For example, for sellers registered on the platform before 1 January 2023, the due diligence procedure must be completed by 31 December 2024.

A platform operator must report for each calendar year by 31 January of the following year. However, the actual deadline for reporting is determined by the date when the reporting platform operator recognizes a seller as a reportable seller. As soon as a registered seller is recognized as a reportable seller, it must be reported in the following year by the platform operator together with all accompanying information. Accordingly, for 2023 the reporting deadline is 31 January 2024 with respect to reportable sellers recognized in 2023. However, when an extension applies for completing the due diligence procedures by the end of the second reporting period, the information about the sellers that are in scope for the extension, must be reported by 31 January of the year following the second reporting period. For example, a reportable seller which was registered on the platform before 1 January 2023 and with respect to which the reporting platform operator decides to make use of the extension for due diligence procedures, needs to be included in the reporting which is due by 31 January 2025.

KPMG can help you with performing an impact assessment and supporting you in complying with the due diligence and reporting requirements. If you are required to register for DAC7 purposes in an EU Member State, we can also assist you with registration in Belgium. For more details, visit our page or contact your trusted KPMG advisor.