President Andrzej Duda signed an amendment to the taxation Information Exchange Act, which introduces fresh obligations for digital platforms. This amendment is the consequence of directives of the European Union which require associate States to increase transparency and efficiency in collecting online transaction data. According to the President's Chancellery, digital platforms will gotta inform taxation authorities about transactions carried out through them. What will be the consequences of this amendment, and who will be affected precisely by the fresh rules?
New Obligations for Digital Platforms
The fresh rules cover a wide scope of activities on digital platforms, including the sale of goods, the provision of services, the provision of means of transport and real property (including premises owned or held in immovable property). Digital platforms will be required to study transactions made by users who have made more than 30 sales of goods during the year and their full remuneration for this has exceeded the equivalent of EUR 2 000. For services, each single sales transaction will be reported.
Reporting procedure
Digital platforms will be required to study collectively to the head of the National taxation Administration. These reports will be transmitted electronically, which will enable fast and effective access to online transaction data. This will give taxation authorities extended access to information, making it much easier to control and verify taxation settlements.
Entry into force of fresh Regulations
Commencement date
New regulations will come into force from July this year. This is an crucial step towards sealing the taxation strategy and limiting the grey area in online commerce. For retailers utilizing digital platforms, this means that transactions request to be accurately recorded and prepared for possible checks by taxation authorities.
Exceptions and Exemptions
It is worth noting that the reporting work does not apply to small, occasional transactions. The threshold of 30 transactions in the sale of goods and the full remuneration of more than EUR 2 000 is intended to cover, in particular, professional retailers operating on a regular basis through digital platforms.
Objective
Ensuring Transparency and Honesty
New regulations are a consequence to the dynamic improvement of online commerce. They aim to guarantee greater transparency and fairness in this sector. Access to detailed online transaction data will let taxation authorities to fight irregularities more effectively and guarantee a level playing field for all traders.
Fighting the Grey Zone
One of the main objectives of the amendment is to reduce the grey area in online commerce. With the fresh rules, taxation authorities will be able to identify and control more easy the unfair sellers who hide their income. This is simply a step towards a more equitable and transparent market.
Consequences for Vendors
The request for Accurate Records
Vendors utilizing digital platforms will gotta evidence their transactions more accurately. The fresh rules require detailed reporting of transactions, which means that sellers will gotta keep more thorough accounts and be prepared for any checks by taxation offices.
Preparation for Checks
The fresh rules besides mean that sellers will should be prepared for more frequent checks by taxation authorities. Digital platforms will be required to supply detailed reports, making it easier for taxation offices to identify irregularities and carry out checks.
Digital Platform Reactions
Digital platforms will gotta adapt their systems to fresh reporting requirements. For many of them, this means that additional functions and tools are needed to let accurate recording and reporting of transactions.
The signing of the amendment of the taxation Information Exchange Act by president Andrzej Duda is an crucial step towards expanding the transparency and efficiency of the taxation system. The fresh rules, which will come into force from July this year, introduce an work to study transactions through digital platforms, which will make it much easier for taxation authorities to control and verify taxation settlements.
For retailers utilizing digital platforms, this means that transactions must be accurately recorded and prepared for any checks. The fresh regulations aim to guarantee fairness and equality in online trade, as well as to reduce the grey area. The introduction of these changes is simply a consequence to the dynamic improvement of online trade and aims to guarantee a more transparent and equitable marketplace for all entrepreneurs.
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President Duda signed a fresh bill. The IRS will check bank accounts and earnings
