DAC7 Implementation for Effective and Transparent EU Taxation
DAC7 Implementation for Effective and Transparent EU Taxation

Author(s): Irina Atanasova, Ivaylo Ivanov
Subject(s): Economy, Law, Constitution, Jurisprudence, Business Economy / Management, Law on Economics, ICT Information and Communications Technologies, EU-Legislation
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: DAC7; STR; OTA
Summary/Abstract: This report examines the Directive on Administrative Cooperation (DAC7), the former Council Directive (EU) 2021/514, and its pivotal role in enhancing tax transparency and combating tax evasion within the European Union's digital economy. Implemented in 2023, DAC7 extends reporting obligations to digital platforms, requiring them to report income information of sellers, thereby closing existing tax gaps and ensuring appropriate taxation of revenue generated through online transactions. Despite the inherent complexities of diverse national taxation systems, DAC7 is broadly accepted by European countries as an effective mechanism for controlling income from activities facilitated by online travel agencies.

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