The document providing methodological guidance through questions and answers summarises the obligations of digital platform operators arising from the new reporting obligation relating to sellers and sales made through these platforms.
Definition of platforms and operators, operator obligations
For the purposes of DAC 7, a platform is software that allows a seller to connect with another user (typically an end customer) to perform a reportable activity for that user. In particular, this involves websites and mobile applications. However, a platform does not include software that was solely designed, e.g., for payment processing or for the promotion of a certain activity (e.g., in the form of a 'notice board' with direct contact to the seller) where the connection between the seller and the user occurs directly and not through the platform.
The actual reporting obligation lies with platform operators who are entities concluding contracts for access to at least part of the platform with sellers. Operators are obliged to report information on sellers and their sales made through their platform. Certain types of operators and sellers are exempt from the reporting obligation by law. The first report, for 2023, will be due by 31 January 2024.
Activities subject to reporting obligation:
- provision of immovable property, e.g., based on a lease, usufructuary lease or accommodation agreement (e.g., residential immovable property, immovable property for business purposes, parking spaces, flats, etc.)
- provision of means of transport, i.e., means of transport without the use of a driver (e.g., cars, motorcycles, etc.)
- personal services provided by a natural person at the request of a platform user, both online and otherwises ale of goods, i.e., movable or immovable property, animals.
Established and non-established platform operators
The reporting obligation in the Czech Republic is mainly imposed on established platform operators, i.e., those who are tax residents or have their permanent establishment here. A platform operator who becomes a Czech reporting platform operator by 17 March 2023 at the latest shall file a notification by 3 April 2023.
A non-established platform operator is one that facilitates the reportable activity in the Czech Republic from abroad and is neither established nor registered in another EU member state. The registration obligation in the Czech Republic for such an operator arises on the date on which the reporting platform operator commences their activities.
DAC7 Authenticated Zone / DAC7 Application
On the MOJE daně portal, the GFD has prepared an environment from which platform operators may file notifications, register, submit reports, and fulfil other obligations. Access to the application is automatic through the Notification of a Czech Reporting Platform Operator or the submission of an Application for Registration of a Non-Established Platform Operator.
Cases in which platform operators are not subject to the reporting obligation:
- Operation of an e-shop offering products to end consumers on behalf of the e-shop operator only. Sale of own products on behalf of and for the account of the e-shop operator without the involvement of a third party.
- Advertising sites only allowing promotion, e.g., in the form of a notice board, without the platform operator providing any additional functionality. This is, e.g., the lease of real property or the presentation of the seller's reportable activity where the advertisement offers a connection with the seller solely by direct contact, i.e., telephone or e-mail contact directly to the seller.
Cases in which platform operators are subject to the reporting obligation:
- On their website, the platform operator has on offer the seller's reportable activity, including contact details for that seller and prices for the reportable activity, and the platform operator facilitates the conclusion of a contract through the platform, e.g., by placing an order. The reporting obligation arises even if the consideration is not collected through the platform and the ﬁnal amount is different compared to the amount listed on the platform operator's website. This only affects the scope of the information to be reported.
- Operation of an electronic marketplace where sellers and their customers enter into a contractual relationship through the platform, including marketplaces operated within e-shops.
Questions and answers on DAC7. An amendment to the Act on International Cooperation in the Field of Taxation No. 164/2013 Coll., regulating the reporting obligation of platform operators, was promulgated in the Collection of Laws under no. 373/2022.