DAC7, introduced by the European Commission, establishes harmonised reporting obligations for digital platforms to support tax authorities in identifying potentially taxable income generated through platform activities. It builds on broader international efforts to improve tax transparency, including work carried out at the level of the OECD. Together, this initiative aims to strengthen trust, improve cooperation between authorities, and ensure fair taxation across the digital economy. During the recast of DAC7, it provided an important opportunity to adjust the framework based on implementation experience and ensure it remains proportionate and effective.
This is why CME supports the overall direction and objectives of DAC7 and its role in strengthening tax transparency. At the same time, implementation experience and corresponding early reflections linked to the recast show that the current framework produces disproportionate impacts on second-hand marketplaces and private individuals who are highly unlikely to generate taxable income.
This is why CME therefore considers it essential that both the implementation of DAC7 and any recast fully reflect the specific characteristics of second-hand marketplaces, notably their strong local dimension, their predominant focus on consumer-to-consumer exchanges, and the reality fact that most users sell personal goods occasionally and without profit-making intent.
For this to be achieved, CME considers that policymakers should prioritise the following when implementing DAC7 and its recast:
- Revising reporting thresholds to better target sellers operating with profit-making intent and reflect the reality of second-hand trade dominated by occasional private sellers.
- Considering removing reporting obligations for the sale of goods, including second-hand goods, or at minimum combining and significantly increasing existing thresholds.
