Submission deadline for operators of digital platforms ending

1. What is the issue for digital platforms?

New reporting requirements on operators of digital platforms were introduced on 1 January 2023. They apply to those who offer goods or services via platforms.

With these requirements, the legislature is collecting certain data on relevant activities on the third parties who use the platform. The Platform Tax Transparency Act (Plattformen-Steuertransparenzgesetzes – PStTG) was introduced based on the European DAC7 Directive. Operators of digital platforms must report the data collected annually to the Federal Central Tax Office (BZSt).

These relevant activities fall into four categories:

• rental of land and buildings
• personal services
• sale of goods
• granting temporary use of means of transport

2. What do platform operators need to report?

Besides reporting master data on the platform and the (third party) vendor in question who is trading on the platform, the legislature intends to ensure that the vendors trading on platforms are taxed properly. The compensation credited or paid out to the vendors is an integral component of the platform operator’s report.

3. When must reports be made?

The deadline to submit the report for the calendar year 2024 is as early as 31 January 2025. Furthermore, other duties under the Platform Tax Transparency Act also have to be complied with. Alongside documentation obligations, the platform operator’s duty to provide information to its vendors on the information to be submitted (Section 22 PStTG) should be emphasised.

4. What do platform operators now need to do?

Businesses in the retail sector affected by the law should check as quickly as possible whether they are affected by the reporting obligation. The Federal Central Tax Office has created the DIP mass data interface for reporting under the Platform Tax Transparency Act. Affected companies in the retail sector should also familiarise themselves with the technical environment. This is quite different from other reports to the Federal Central Tax Office. Furthermore, the plausibility of the data collected should also be checked. In this way platform operators can quickly comply with their duty to provide information to vendors. If operators of digital platforms do not comply with their duties, there are serious fines under Section 25 of the Act of up to 50,000 euros.

We will be glad to answer all your questions on the Platform Tax Transparency Act – we are there for you, for everything from impact analyses to legal and technical questions to preparing and submitting your reports. We’re looking forward to hearing from you!