Marketplaces in Italy, which are now obliged by an EU directive (DAC7) to collect, verify and report information on sellers, have been given a two-week extension to pass on information relating to 2023 to the Agenzia delle Entrate, the country’s tax agency.
Marketplace owners now have until Feb. 15, 2024 to provide details to the Agenzia of relevant transactions “for the purpose of receiving compensation” in real estate and the provision of services — including accommodation, the sale of goods and transportation rental — during the year.
The Italian authorities require information about individuals or businesses that have made more than 30 transactions or earned more than €2,000 during the year.
The directive aims to increase transparency and avoid tax evasion across the EU.
DAC7 applies not only to Italian residents but also to residents of other EU member states who use marketplaces to conduct business in Italy or other countries in the EU.
Companies that operate in Italy but are registered in other EU member states will report to the latter e.g. AirBnB’s European headquarters are in Dublin, so it is obliged to report to the Irish tax authorities on its operations throughout the EU, rather than to each member state.
Italy is already behind in implementing the new EU directive, which should have been in place by December 2022. The delay has earned the country a reprimand from the European Commission, but it was not the only member state to receive a letter of formal notice.
It remains to be seen whether there will be any further extensions from the Agenzia and how easy or difficult the directive will be to comply with.