The UK Treasury has updated its regulations for digital platform operators on 31 October 2024.
The UK Treasury introduced “The Platform Operators (Due Diligence and Reporting Requirements) (Amendment) Regulations SI 2024/1082 (Regulations SI 2024/1082)”, which amends the Platform Operators (Due Diligence and Reporting Requirements) Regulations SI 2023/817 (Regulations SI 2023/817).
The Regulations SI 2023/817 enforce the OECD (2020) Model Rules For Reporting By Platform Operators With Respect To Sellers In The Sharing And Gig Economy and the OECD (2021) Model Reporting Rules For Digital Platforms: Optional Module For Sale Of Goods.
The new rules establish new reporting requirements and eliminate the obligation for these operators to implement a proportional reduction for seller exclusions.
The UK tax authority, His Majesty’s Revenue and Customs (HMRC), has released a policy document regarding the associated regulations.
The new regulations impact digital platform operators in the UK that enable services or sales by UK-based sellers. It will also affect UK taxpayers who use these platforms. HMRC states that these amendments will ensure timely reporting of UK seller information without delays caused by waiting for information that would be received from another jurisdiction.
Regulations SI 2024/1082 introduce two amendments to Regulations SI 2023/817:
- Regulation 4 is amended so that the reporting exemption in paragraph (5) does not apply where the condition in paragraph (5)(a)(ii) is met. Still, the reporting platform operator must consider the reportable seller resident in the United Kingdom under section II(D)(1) of the model rules;
- Regulation 10 is omitted to remove the proportional reduction of thresholds in the model rules in cases where the seller is registered on the platform for only part of a reportable period. Consequential amendments are made to Regulation 2 and Schedule 1 to omit the definition of “excluded seller.”
The new regulations will come into force starting 25 November 2024.
