1 August 2023
On July 26, 2023, Law n.º 36/2023 was published, transposing Directive (EU) 2021/514 of the Council on administrative cooperation in the field of taxation (DAC7).
The purpose of DAC7 is to regulate transactions of goods and services through digital platforms, addressing various tax challenges posed by the digital economy. DAC 7 introduces new compliance rules and mandatory automatic exchange of information to be reported by platform operators to EU member states.
In this regard, Law 36/2023, which transposes DAC 7 into the Portuguese legal system, introduces changes to the General Regime on Tax Offenses (RGIT), the Complementary Regime of Tax and Customs Inspection Procedure (RCPITA), and Decree-Law No. 61/2013 of May 10, related to administrative cooperation in the field of taxation.
For more on details on DAC7, namely its scope of application, entities covered, and specific information to validate and share with the Tax Authority (AT), please refer to our article: “Tax Alert | DAC7: New tax transparency criteria for platforms in non-EU countries”.
Entry in force
Relevant for economic operators, the law comes into effect on January 1, 2023.
The first DAC 7 reports must be submitted at the company level (digital platform operators) by January 31, 2024.
Therefore, we recommend:
- Conducting an impact assessment to determine if your company falls within the scope of DAC 7.
- In case of inclusion, develop and implement relevant internal controls and procedures to collect, prepare, and report the required information.
Failure to comply, either partially or entirely, with the obligations set forth in DAC 7 may result in fines ranging from € 250.00 to € 22,500.00, depending on the nature and severity of the offense.
We are, of course, at your disposal should you require specialized assistance in this area.
The information above is not intended to be an exhaustive analysis of all the changes to the current legal regime, but a selection of those that we believe to be the most relevant, and do not dispense with consulting our Company and/or the diplomas to which they refer.
For more information contact: Catarina Breia (+351 91 7575 832 or firstname.lastname@example.org)) from our Tax Department.