The European Commission has announced the conclusion of the infringement procedure against Germany and Hungary for their failure to comply with the obligation to automatically exchange information as mandated by the Amending Directive to the 2011 Directive on Administrative Cooperation (2021/514) (DAC7) in their domestic legislation.
The Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC7) introduced, as of 1 January 2023, new tax transparency rules for transactions on digital platforms to better identify situations where tax should be paid.
Earlier, on 23 May 2024, the European Commission decided to open an infringement procedure by sending a letter of formal notice to Germany (infringement number INFR(2024)2043) and Hungary (infringement number INFR(2024)2045 for failing to exchange timely information on income earned by individuals and companies through the use of online platforms.
The EC concluded the proceedings on 3 October 2024 without offering any further explanation.
