Germany extends deadline for submitting first DAC7 report
GermanyThe PStTG was introduced on 1 January 2023. Essentially, digital platform operators are now obliged to report information on income generated by providers on their platform to the authorities.
This reporting obligation affects platforms that are based on digital systems that enable users to contact each other and conclude legal transactions. These relevant legal transactions must either be aimed at the performance of relevant activities by the providers for other users or the collection of payment for such activities.
The relevant reportable activities include in particular:
- the temporary transfer of rights regarding immovable property,
- the supply of personal services,
- the sale of goods,
- the temporary transfer of rights regarding means of transportation.
The remuneration credited and paid to the providers must specifically be reported. In addition, other data (as listed in section 14 PStTG) must also be reported.
In a recent communication, the Federal Central Tax Office (BZSt), as competent body, has now pointed out that failure to submit the first report for 2023 on time will not be sanctioned, provided that a report is submitted by 31 March 2024. This is effectively an extension of the reporting deadline, which was originally 31 January 2024.
Key takeaway
Submitting a report in accordance with the PStTG is a considerable administrative burden for the platforms concerned. The fact that the deadline has been de facto extended indicates that the authorities are aware of this as well. However, a further extension of the deadline should not be expected. Therefore, platforms affected should introduce DAC7 reporting tools now to ensure that the relevant data is collected and transmitted to the BZSt within the extended deadline.
