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Platform operators obliged to communicate information

Law 13/2023, of May 24, modifies Law 58/2003, of December 17, General Tax (LGT), in several aspects, among them it incorporates a new Additional Provision 25 in the LGT (hereinafter DA 25 of LGT ). This provision aims to establish a new obligation of information and due diligence relating to the informative tax return of platform operators obliged in the field of mutual assistance, for those matters that require regulation by law with a legal rank.

Through this Additional Provision, the transposition to LGT of Council Directive (EU) 2021/514, of March 22, 2021, which modifies Directive 2011/16, is carried out. /EU on administrative cooperation in the field of taxation (DAC 7). This Directive establishes an obligation of information, registration and due diligence for platform operators, who act within the scope of application of European regulations. The provisions that, in this regard, are contained in the Multilateral Agreement between Competent Authorities for the automatic exchange of information on income obtained through digital platforms within the scope of the OECD are also incorporated into the domestic legal system. , as well as in other international agreements signed with the same objective.

Digital platform operators must communicate various data related to certain concerted economic activities through the digital platforms they manage, putting sellers of goods or providers of certain services and the users of said platforms in contact.

"Platform operators obliged to communicate information" must meet three types of obligations. Firstly, the due diligence rules and procedures that must be applied to sellers to obtain and verify information about them. In addition, they must be registered in the census in the terms in which it is determined by regulation. Finally, once the information is obtained, they must provide it to the Tax Administration.

Effective January 1, 2023, the new DA 25 of the LGT , establishes that entities that are considered “platform operators obliged to communicate information” must comply with the rules and procedures of due diligence, as well as registration and information provision obligations, in relation to “sellers”. The latter will also be subject to the communication of data to the aforementioned operators, under these due diligence rules.

The development of the due diligence standards and procedures, as well as the obligations of registration and provision of information, will be carried out in the terms established by regulation, particularly in the General Regulation of management and inspection actions and procedures. tax and development of common standards for tax application procedures, approved by Royal Decree 1065/2007, of July 27.

Infractions and sanctions arising from non-compliance with the obligations provided for in section 1 of the new DA 25 of LGT will be regulated by the provisions of title IV of said Law with the specialties established in sections 2, 3 and 4 of said provision.

Additionally, sections 5 and 6 of the aforementioned Additional Provision regulate the consequences, both for “sellers” and for “platform operators obliged to communicate information”, of non-compliance with their information obligations.

For its part, section 7 of DA 25 of LGT establishes the obligation to preserve and make available to the Tax Administration documentary evidence, records and any information used to apply due diligence procedures and to comply with the obligations of registration and provision of information during the 10 years following the end of the reference period to which the provision of information corresponds.

Finally, section 8 of DA 25 of LGT includes the obligation of the platform operator to inform each natural person “seller” that the information about them will be provided to the Tax Administration and transferred to the corresponding State. All of this prior to the sending of the information, so that the natural person can exercise their right to the protection of their personal data.

In summary, a new information, registration and due diligence obligation for digital platform operators is incorporated into the LGT , through the transposition of related international directives and agreements. Operators of electronic commerce platforms must obtain, retain and make available to the Tax Administration certain information, which in some cases must be provided by sellers. Failure to comply with these information obligations entails a specific sanctioning regime.

You can consult the full text of the Law at the following link: Law 13/2023, of May 24 .