Sales on digital platforms must be reported to the tax authorities

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Consumer habits have changed. Companies have migrated to the digital world en masse. Online commerce has grown to a level never seen before. But all good things come from assumptions: sales on digital platforms must now be reported to the tax authorities.

These rules come into force from 1 January 2023 and are essentially intended to improve administrative cooperation in the area of ​​taxation. The response to this requirement is that all operators of online sales platforms must report the income obtained by sellers.

Why implement this tax obligation?
Eliminating tax evasion. Detecting income earned. Preventing loss of tax revenue and increasing tax transparency in the European Union. These are the main reasons behind the implementation of this measure, which requires that sales on digital platforms be reported to the tax authorities.

1. Eliminate the risk of tax evasion
Preventing tax evasion, addressing the major challenges posed by the digital jamaica whatsapp number database economy, is one of the main objectives of these new rules that cover all digital platforms within the European Union, but not only: platforms such as Facebook and Instagram are also included in these measures.

2. Control income
This tax measure allows national tax authorities to detect income earned through digital platforms and determine the relevant tax obligations. At the same time, another key benefit is the guarantee that sellers active on digital platforms also pay their fair share of taxes.

3. Minimize loss of tax revenue
Despite the growing number of consumers opting to shop online and businesses embracing digital platforms, income is often not declared and taxes are not paid. This results in a loss of tax revenue for Member States and creates inequalities compared to traditional retailers and shops.

4. Optimize the exchange of tax information in the EU
Greater tax transparency in the European Union is another major objective of these rules imposed on digital sales platforms. This strictness is the result of the obligation for digital platform operators to pay taxes according to the revenues collected, thus improving the exchange of information and cooperation between the tax authorities of the Member States.

Digital platforms are here to stay
These measures that impact digital sales platforms come at a time when e-Commerce is becoming the preferred shopping model. This significant growth, resulting not only from digital evolution but also from the COVID-19 pandemic that has driven changes in consumer habits, is having an impact on public finances.

This is why it is important that European tax rules extend to online businesses promoted, for example, through social networks, marketplaces or online stores.

Today, the tax field is no longer just a major challenge for physical sales and, for this reason, it is essential to be aware of the new tax guidelines.

Keep your tax obligations up to date
There is no doubt that the changes caused by the pandemic, especially in the retail landscape, will overcome the barriers of social distancing and online commerce will become an even more common habit.

Finding the best management partner is the first step to complying with all legal and tax guidelines without neglecting profitability. This compliance involves investing in a certified system that integrates with the online store so that the entire tax process is carried out automatically.

PRIMAVERA solutions already guarantee the agility, efficiency and tax transparency that businesses need in the digital age. PRIMAVERA Invoicing Engine is a solution duly certified by the Tax and Customs Authority, which complies with all legal and tax requirements associated with invoicing .

Meet legal and tax requirements by keeping your systems continually updated, in compliance with legislation, and always ensuring maximum performance and quality of service.