French tax authorities clarified that companies managing copyright royalties and inventor rights require companies to include the beneficiary’s date of birth in declarations when the recipient is an individual residing in another EU Member State. These royalties are now subject to automatic information exchange across the EU.
This update was clarified in updated guidelines BOI-BNC-SECT-20-10-60 on 30 December 2024, in line with Article 241 of the General Tax Code and the EU’s DAC7 directive.
DAC7, or the Directive on Administrative Cooperation in the field of taxation, is an EU legislation aimed at enhancing tax transparency in the digital economy. The directive primarily targets digital platform operators, requiring them to report specific information about sellers using their platforms for commercial activities to EU tax authorities.
