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With the pandemic, many companies have reinvented themselves! Online has been the way and there are cases of great success. However, just like in traditional businesses, there must be rules for platforms like Facebook or Instagram.
The Council of the European Union (EU), currently chaired by Portugal, today adopted new rules to this effect.
Sales on Facebook and Instagram declared as of January 1, 2023
The goal is to force digital platform operators to report the revenue earned by sellers. These are new rules to "face the challenges posed by the economy of digital platforms", approved today by the Council of the EU and that will enter into force from January 1, 2023, which covers digital platforms located both inside and outside the EU (such as Facebook or Instagram), the structure in which the Member States are represented is reported in a statement.
João Leão, Minister of Finance of Portugal, said that this is ...
a major update to EU rules, which will help ensure that sellers active on digital platforms also pay their share of taxes
It is particularly welcome at a time when more and more sales are being made over the Internet and when the Covid-19 pandemic is putting pressure on public finances.
The EU is setting an example for the world by extending its rules for the automatic exchange of information to the digital platform economy
According to the City Council, the new regulations for platforms such as Facebook or Instagram "will allow national tax authorities to detect the income obtained through digital platforms and determine the relevant tax obligations." Compliance will also be easier for digital platform operators, as notification will only take place in one Member State, according to a common EU framework.
According to the Council, the amendments to the Directive on administrative cooperation in the field of taxation also aim to improve the exchange of information and cooperation between the tax authorities of the Member States.
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