The DAC7 Directive, which was adopted within the European Union in 2021, introduced a reporting obligation for platform operators on sellers who generate income through platforms from the rental of real estate, personal services, the sale of goods and the rental of any mode of transport. The provisions of the DAC7 were transposed into the Slovenian legal order in December 2022 by an amendment to the Tax Procedure Act (ZDavP-2N) and are contained in Chapter III.Č of Part IV of the Tax Procedure Act – ZDavP-2.
On this basis, the Tax Administration will receive from the platform operator’s information on sellers who have generated income through their platform, which also applies to legal and natural persons from the Republic of Slovenia.
As the Tax Administration will also use this data for tax audits in 2024, we advice all those who generate income through online platforms to declare it accordingly. The obligation to declare also applies “retroactively”, i.e. also to income generated in 2023 and even before 2023.
In this respect, we would like to clarify that, as a rule, business conducted through online platforms is a gainful activity, and therefore the income derived from this activity is treated as business income under Chapter III.3 of the Income Tax Act (ZDoh-2), or under the Corporate Income Tax Act (ZDDPO-2) if the taxpayer operates the activity as a company – for example, as a “d.o.o.” (limited liability company). If you do business through online platforms, declare your income.
Exceptionally, income from online platform business is treated as income from another contractual relationship under Chapter II.2 of the Income Tax Code if the criterion of independent, autonomous and permanent pursuit of an activity is not met (i.e. in the case of one-off or occasional transactions) or as income exempt from income tax under Article 32.1 of the Income Tax Code in the case of income from the disposal of movable property (e.g. the sale of second-hand goods).
What information will the Tax Administration receive?
Platform operators are obliged to report the identification data of sellers, data on compensation received, commissions, fees and taxes withheld, data on the number of activities carried out, data on the financial accounts to which the compensation has been paid and, in the case of rental properties, for each property, the type, address and identification of the property and the number of days of rental.
More detailed information on the reporting obligations of platform operators is also available on the website of the Financial Administration.
If you need specialised tax or accounting advice, please contact us: [email protected] or +386 01 200 92 00.
To be continued in the next post