Tax reporting by digital platforms under DAC7 A proportionality assessment

In early 2021, the European Union (EU) introduced a standardized tax reporting requirement for digital platforms through a Council Directive known as DAC7. The rules introduced by this Directive require third-party operators of digital platforms to systematically collect, verify, store, and report specific personal and transactional data about platform sellers to the tax authorities of the Member States. This data is then automatically exchanged between EU tax authorities.
While DAC7 rules for digital platforms pursue a worthy goal (e.g., combating tax evasion) which, at first glance, would justify a public intrusion into the private sphere of both platform sellers and third-party platform operators, a key question that arises is whether such intrusion does not exceed what is necessary in the public interest. This essentially concerns a matter of ‘means’ and ‘ends’ or, in other words, of proportionality.
This book provides a comprehensive and in-depth assessment of the proportionality of DAC7 rules for digital platforms. It examines whether these rules are aligned with the general EU law principle of proportionality from both a policy and legal perspective and, when this is not the case, it identifies potential improvements that could be made to ensure such alignment.