In order to discuss the issues raised in the course of this process, the Estonian Tax and Customs Board (ETCB) invites all platform operators in Estonia to a round table discussion.
According to Annika Oja, owner of ETCB’s natural person’s services, platform operators must submit information to the ETCB for the first time by 31 January 2024.
“We look forward to an overview of the information collected in 2023. In the future, data for the previous year will have to be reported annually", she explained the new obligation of platform operators.
However, the new reporting obligation does not exempt individuals, whether sellers or service providers, from their own legal obligation to declare their earned income once a year in the income tax return of a natural person.
“The aim of the amendment is to give us the opportunity to check the data submitted by people more effectively, but from the perspective of a private individual, submitting an income tax return will become easier in the future. We plan to start pre-filling income tax returns based on the information collected, as we currently do with the information on wages," Oja said.
Platform operators have to provide information on sellers or service providers who, for a fee, carry out at least one of the following activities through a platform:
1) renting or leasing immovable property or part thereof, e.g. short-term rental of a dwelling on Airbnb;
2) provision of time or task based service, e.g. provision of courier services through Fudy;
3) transfer of things, e.g. selling jewellery on Yaga;
4) leasing or renting out a means of transport, e.g. renting a car through Autolevi.
Platform operators must collect and submit information about both persons taxable in Estonia and in other Member States of the EU operating on their platforms. “Information about persons taxable in other Member States is shared with the tax authorities of the respective Member States. On the same principle, tax authorities of other Member States will give us the information collected from their platform operators about persons taxable in Estonia," Oja explained.
The reporting obligation applies from the moment a person conducts at least 30 transactions and/or receives a fee of more than 2 000 euros for selling something.
Responsibility of a platform operator
The ETCB exercises supervision over compliance with the reporting obligation of platform operators, in the course of which it is possible to apply different measures in order to influence a platform operator to comply with the obligations. As part of the supervision proceedings, the ETCB will first remind a platform operator about the obligation to submit data, giving the platform operator a new deadline to fulfil its obligations. In doing so, the ETCB may issue a warning of imposing non-compliance levy to the platform operator. If the platform operator fails to comply with the reporting obligation within an additional term, the ETCB has the right to impose a non-compliance levy on the platform operator.
If this does not produce results, a warning informing users that the platform does not comply with the reporting obligation and may be blocked can be added to the platform. If the platform does not comply with the reporting obligation despite less stringent measures, it is possible to block the platform in Estonia if there are no other ways to eliminate the violation.
ETCB convenes a round table
In May, the ETCB will organise a round table in order to help solve the issues and challenges of economic operators arising from the new reporting obligation. Representatives of all platforms operating in Estonia are welcome.
"We plan to introduce the schedule for the development of our new online reporting form. Consultants from the Tax Audit Department, as well as other legal and tax experts of the ETCB will be present to answer all questions," added Oja
