Luxembourg’s Tax Administration for Direct Taxes (Administration des Contributions Directes – ACD) issued a newsletter on registering and declaring reporting obligations resulting from the Amending Directive to the 2011 Directive on Administrative Cooperation (2021/514) (DAC7) on 16 September 2024.

DAC7 Act does not create new tax rules or introduce a new tax on sellers, it introduces new registration, notification, and reporting obligations for platform operators.

For the DAC7 registration

• A Luxembourg platform operator must provide their name and Luxembourg tax ID number (TIN) during registration.
• The platform operator of a third state registering in Luxembourg must provide its name, postal address, email addresses (including any TIN issued and the Member State of issue), information on whether it is subject to VAT within the European Union, and the Member States where the declared sellers reside.
• When registering, the excluded platform operator must provide their name, postal address, email addresses, website, and any issued TIN, along with the Member State of the issue and the tax year for which the exclusion is claimed.

For the DAC7 declaration 

• The platform operator must provide essential information, including its name, head office address, NIF, individual identification number (NII), and the commercial reasons for the platform(s) for which the declaration is being made.
• The information required for each seller includes details from the due diligence process, the financial account identifier, the Member State(s) of residence, the total consideration paid or credited each quarter, the number of relevant activities for which it was paid or credited for, and any fees, commissions, or taxes withheld or levied.
• When renting real estate, the required information is the property address, land registration number, property type, and the number of days it was rented during the reporting period.
• Platform operators must register, notify, and declare to the Inland Revenue electronically via the dedicated procedures on the secure state platform MyGuichet.

Registration deadlines

Platform operators must register by 31 December 2023. If they begin their activities as platform operators after this date, they are required to register no later than the start date of their operations.

Updated  FAQs concerning the registration and declaration of information

Luxembourg’s tax authorities (ACD) have also published its updated Frequently Asked Questions (FAQs) concerning the registration and declaration of information to be declared by Platform Operators under the law of 16 May 2023 relating to the automatic and mandatory exchange of information to be declared by Platform Operators.

The FAQs provide details regarding the interpretation and implementation of the DAC7 Law. Clarifications have been provided for the Sellers to highlight that DAC7 does not establish new tax rules or impose additional taxes on them. Instead, the DAC7 legislation introduces a new obligation for registration, notification, and declaration concerning Platform Operators.

Additionally, the FAQs clarify that the taxation of counterparties will follow Luxembourg’s current tax legislation, and the DAC7 law does not impose new declaration obligations on sellers in Luxembourg.