The development of the DAC guidelines

It is a topic that is not popular, I personally have to admit that I am not really a fan of it; however, both for the work of us, tax advisors, and to some extent also for the work of economic department staff, it is necessary to be aware of the mentioned DAC guidelines. It is not my aim to make a complete list of all the directives, but only to inform about the ones I consider are the most up-to-date as of now.

DAC 6

A very frequently discussed directive was the one called DAC 6. This directive was intended to ensure automatic reporting of information on cross-border tax arrangements that are potentially aggressive tax planning. The relevant law was published in the Collection of Laws under number 343/2020 Coll.

DAC 7

In contrast, DAC 7 is dedicated to introducing new rules on transparency for digital platforms. Digital platforms will be obliged to report the income of individuals and businesses earned through these platforms. This is to address the problem of non-taxation of income, particularly in situations where digital platforms operate in multiple countries.

As stated by the Ministry of Finance, the directive will focus specifically on:

• provision of immovable property for use (residential immovable property, immovable property for business purposes, parking spaces, flats or any other immovable property or part thereof),
• provision of a means of transport for use (the possibility of using a means of transport without a driver, as the provision of a transport service by a driver is a personal service),
• personal services (the work of a natural person based on time or a task, it is irrelevant whether the service is provided in an online or physical environment),
• sale of goods (goods are here considered to be tangible goods and animals).

Under the amended Administrative Cooperation Directive, the new obligations should be applied from 1 January 2023.

DAC 8

The extension of the scope of this Directive to also cover the exchange of information concerning electronic money and virtual assets, and common rules on administrative sanctions and tax compliance measures is currently under consideration. Work is currently underway on that proposal with an intention to its submission by the European Commission for consideration by the Council sometime during the third quarter of this year.