Czech Republic: Guidance provided in Q&As on new reporting obligation under DAC7
Q&As with regard to obligations of digital platform operators arising from new reporting obligation relating to sellers and sales
Guidance provided in Q&As on new reporting obligation under DAC7
The General Financial Directorate (GFD) published a new list of “questions and answers” (Q&As) with regard to the obligations of digital platform operators arising from the new reporting obligation relating to sellers and sales made through these platforms. The first report, for 2023, is due 31 January 2024.
The reporting obligation is mainly imposed on established platform operators, i.e., those who are tax residents or have their permanent establishment (PE) in the Czech Republic. A platform operator who becomes a Czech reporting platform operator by 17 March 2023 must file a notification by 3 April 2023.
A non-established platform operator is one that facilitates the reportable activity in the Czech Republic from abroad and is neither established nor registered in another EU member state. The registration obligation in the Czech Republic for such an operator arises on the date on which the reporting platform operator commences their activities.
Activities subject to reporting obligation:
- Provision of immovable property, for example based on a lease, usufructuary lease or accommodation agreement (e.g., residential immovable property, immovable property for business purposes, parking spaces, flats)
- Provision of means of transport without the use of a driver (e.g., cars, motorcycles)
- Personal services provided by a natural person at the request of a platform user
Cases in which platform operators are subject to the reporting obligation:
- On their website, the platform operator has on offer the seller's reportable activity, including contact details for that seller and prices for the reportable activity, and the platform operator facilitates the conclusion of a contract through the platform, for example by placing an order. The reporting obligation arises even if the consideration is not collected through the platform and the ﬁnal amount is different compared to the amount listed on the platform operator's website. This only affects the scope of the information to be reported.
- Operation of an electronic marketplace when sellers and their customers enter into a contractual relationship through the platform, including marketplaces operated within e-shops.
Cases in which platform operators are not subject to the reporting obligation:
- Operation of an e-shop offering products to end consumers on behalf of the e-shop operator only. Sale of own products on behalf of and for the account of the e-shop operator without the involvement of a third party.
- Advertising sites only allowing promotion, for example in the form of a notice board, without the platform operator providing any additional functionality.
Read a January 2023 report prepared by the KPMG member firm in the Czech Republic
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