UK: Government delays reporting requirements for digital platforms until January 2024
Her Majesty’s Revenue and Customs (HMRC), United Kingdom’s Tax Authority, has released an Update on the UK’s reporting standards for digital platforms.
In response to a recent consultation on the adoption of the OECD’s Model “Reporting standards for digital platforms,” the UK Government has determined that the new regulations will take effect on 1 January 2024. This extended date is designed to provide platforms and their advisers with more time to prepare for the implementation of the new regulations, with information collection commencing on 1 January 2024 and the first reports due by the end of January 2025.
The revelation that UK reporting would be postponed may be generally welcomed by platforms as a chance to have more time to adjust to new regulations, but the postponement may not be advantageous for all UK-based platforms.
Because of extraterritorial rules in DAC7, platforms that interact with sellers in the EU will be forced to report in an EU nation in 2024 rather than in the United Kingdom.
Source: gov.uk
