Latvia: New reporting obligations for digital platform operators (DAC7)
Council Directive (EU) 2021/514 (DAC7) is being incorporated into Latvian law
New reporting obligations
The Council Directive (EU) 2021/514 (DAC7) is being incorporated into Latvian law and will require digital platform operators to provide information on income generated by vendors—effective 1 January 2023.
The draft law has been approved by the Cabinet of Ministers and forwarded to the Saeima for review.
The more detailed requirements of DAC7 are intended to be incorporated into Latvian law by means of a Cabinet Regulation on automatic exchange of information on vendors that generate income through digital platforms. The regulation is planned to address:
- Conditions under which platform operators will be required to provide information to the State Revenue Service (SRS) on vendors that generate income in the particular digital platform
- The volume of disclosures to be made
- The procedure for obtaining, checking and providing such information to the SRS
- Measures to be taken to provide automatic exchange of information
- Rights and obligations related to the exchange of information
- The procedure to be used by the SRS to automatically exchange information with tax administrations of other member states
The Cabinet Regulation is currently under public discussion. According to DAC7, the regulation must be incorporated in member state law by 31 December 2022 and applied from 1 January 2023. Digital platform operators will be required to submit their first report (for 2023) by 31 January 2024. The Cabinet Regulation is expected to enter force on 1 January 2023.
Read a December 2022 report prepared by the KPMG member firm in Latvia
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