A new EU-directive (DAC7) requires MATCHi to report revenue to tax authorities
New legislation puts an obligation on platforms to report ‘Sellers’ annual income (as well as associated costs) to the tax authority. There are no changes to your obligation to report or pay tax based on this. The income that must be reported comes from letting fixed property, selling goods or selling personal services.
What will be reported?
Currently, only selling of personal services is relevant to the MATCHi platform. Personal Services are defined as a service involving time- or task-based work performed by one or more individuals. Examples given are online courses and sport sessions. We have identified the following as Personal Services under the law:
- activities for personal or group training
- courses for training/education
The first reporting is done in January 2024 for the full year of 2023 and then repeated annually. If you have had income in the above categories (many venues have not) you will receive a statement from us in January notifying you of what we have reported to the Swedish tax authorities. This statement is in .xml format, as required by the Swedish tax authorities, so the presentation will appear dense.
The legislation also requires that we know more about our customers and information must be kept up to date and is part of the reporting requirement. Therefore, you might be prompted to confirm basic information about your company with regular intervals, such as company name, registration or TIN-number (tax id number), VAT-number, address and information of where any payment is made to. As this is information we have to supply, any confidentiality commitments or GDPR protection cannot be relied upon to prevent reporting. Please make sure to provide us with current email-addresses so you do not miss out on any important information.
Do I have to pay more tax or do anything differently?
These new rules do not change your obligation to pay tax in any way and all venues/customers are subject to the same rules as previously in this regard. If income is not reported fully today, the risk of detection of such shortcomings might increase.
Where can I learn more?
The legislation stems from an OECD initiative which has been adopted in EU-law and then into Swedish law. If you wish to read in more detail about the rules, we refer you to the OECD or for our Swedish customers, Skatteverket.