The European Commission (EC) has decided to open an infringement procedure by sending a letter of formal notice to Germany [INFR(2024)2043], Hungary [INFR(2024)2045], Poland [INFR(2024)2047], and Romania [INFR(2024)2048] for failing to exchange information on income generated by companies and individuals through the use of online platforms.

The Council Directive (EU) 2021/514 of 22 March, 2021, amends Directive 2011/16/EU on administrative cooperation in taxation (DAC7) and establishes new tax transparency rules for transactions on digital platforms as of 1 January, 2023.

Reporting should occur in two stages. First, online platforms must collect information on the income earned by individuals and companies throughout 2023 and report it to the platform’s Member State. Then, by 29 February, 2024, that Member State must exchange the information.

Germany, Hungary, Poland, and Romania have failed to meet their obligation to exchange the necessary information with the tax authorities of other Member States.

The EC sent a letter of formal notice to the member states. They are given two months to respond and complete the exchange of information. If they fail to provide a satisfactory explanation within this timeframe, the Commission may proceed with issuing a reasoned opinion.