The digitalisation of the economy has given rise to an increasing number of complex situations linked to tax fraud, tax evasion and tax avoidance. The cross-border dimension of services offered through the use of platform operators has created an environment where it can be challenging to enforce tax rules and ensure tax compliance. To this effect, in March of 2021, a Council Directive has been published to oblige platform operators to provide information to tax authorities on income of sellers derived through their platforms. The objective is to create a standardised reporting requirement which would apply across the EU.
This directive has been transposed in Maltese laws in January of 2023 and Maltese platform operators are now obliged to perform due diligence procedures and fulfil reporting requirements on the sellers operating through their platforms where the activity covers the following:
- Rental of immovable property
- Personal services
- Sale of goods; and
- Rental of any mode of transport
Penalties will be imposed by the offices of the Commissioner for Revenue if these obligations are not adhered to.