eWHT platform operators
Introduction
It is intended that eWHT will apply to platform operators currently defined as platform operators required to make a return under the Model Reporting Rules for Digital Platform Operators (MRDP). The return made by these platform operators is commonly known as a DAC7 return. There are some differences between eWHT and DAC7 scope as outlined below.
What is a platform?
A platform means any software, including a website or a part thereof, and applications including mobile applications, accessible by users that allows sellers to be connected with those users for the purpose of carrying out a relevant activity either directly or indirectly. In addition, any arrangement for the collection or payment of a consideration in respect of a relevant activity in included in the definition of a platform.
The term "platform" does not include software that without any further intervention in carrying out a Relevant Activity exclusively allows any of the following:
- processing of payments in relation to relevant activity.
- users to list or advertise a relevant activity.
- redirecting or transferring of users to a Platform.
Who is a platform operator?
A platform operator is an entity that contracts with sellers to make available all or part of a platform to those sellers.
Will all platform operators who are required to make a DAC7 return become Designated Withholders?
All platform operators that facilitate the carrying out of a relevant activity by a seller in the State will become Designated Withholders and will be required to operate eWHT.
This will be case regardless of the tax residency of the platform operator, where it is incorporated or has its place of management or whether it has a permanent establishment in this State or any other Member State.
What relevant activities will come within eWHT?
Relevant activity will mean an activity carried out for consideration and being any of the following:
- the rental of immovable property, including both residential and commercial property, as well as any other immovable property and parking spaces
- a personal service
- the rental of any mode of transport.
It is intended that the range of activities that will come within eWHT will differ from the range of activities that come within the DAC7 reporting requirements. It is not intended that the sale of goods will be included in the scope of eWHT.
Who are sellers?
"Seller" means a Platform user, either an individual or an Entity, that either provides a relevant activity or is paid or credited a consideration in connection with a relevant activity.
All sellers will be regarded as Specified Persons for eWHT.
What is the position regarding sellers who are excluded from the DAC7 reporting requirements?
Under the current DAC7 rules platform operators are not required to include the following sellers in a DAC7 return:
- A Government entity.
- Sellers of goods with less than 30 transactions and for a total amount of €2,000 in the reportable period.
- Entities listed on a stock exchange.
- Sellers that rent the same immovable property listing through the platform more than 2,000 times during the reportable period.
It is not intended that sellers of goods will be within the scope eWHT however the other sellers listed above will be included in eWHT, and will become Specified Persons for eWHT.
Where can I get information on platform operators DAC7 obligations?
More information on DAC7 is available on the Revenue website.