Digital Platforms – it’s time to get ready
Are you an online platform or marketplace that:
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Sells or delivers goods?
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Provides personal services?
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Rents transport?
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Rents property?
If the answer is yes, you may be in scope for the new Reporting Rules for Digital Platforms.
These rules will be coming into effect in the UK on 1st January 2024, and became live in the EU from January 1st 2023 . Whilst we are still awaiting final technical guidance from HMRC, which we expect in the coming months, the OECD’s Model Rules and the EU’s DAC7 give us a very good idea of what that will look like.
We do know what the penalties look like for non-compliance and late reports, and these could quickly compound into significant amounts if your firm is not adequately prepared for this.
Now is the time to start thinking about what your new regulatory responsibilities are going to be, and how you are going to
approach them. EFI is here to help.
EFI combines regulatory expertise with operational excellence to help you meet your obligations. We can guide you in developing the appropriate processes and provide the technology required to help you comply with ease.
Not sure what’s happening?
The OECD (Model Rules) and the EU (DAC7) relate to the collection of personal and tax information from companies and self-employed sellers earning income through your platform. This income information will also need to be reported annually back to local tax authorities, such as HMRC in the UK.
If you do business in the EU, you will need to have your policies, procedures and controls in place by the end of 2022, and those with UK only services by the end of 2023. That might seem like some time away, but operationalising some of the elements and formalising your processes and procedures can sometimes be a lengthy process.
Where to start?
We know that different companies will be in different starting positions for these regulations – if you are not sure where to start, or what to do next, then EFI can help. These new regulations for digital platforms are based on those already in existence for financial institutions, and EFI specialises in this area. By working with EFI you can access:
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Vast experience of delivering regulatory expertise to assist firms in achieving a high standard of compliance
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Industry leading technology solutions which collect and validate the data you will require from sellers
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Reporting technology that can produce and validate your annual reports for the tax authorities
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As much or as little of our end-to-end services that you need: from advice, to implementing new technology, to managed services where we can do the work on your behalf
