Airbnb, Vinted, LeBonCoin, Ebay, … these platforms will report all your income to the tax authorities on January 31

Platforms such as LabonCoin, Vinted and Airbnb will have to transmit their users’ income to tax authorities by January 31, 2024. This risks disrupting the habits of Internet users who use these sites on a daily basis. To do this, these platforms are required to declare to the tax administration the income of the persons participating in their turnover.

DAC 7: Strengthening cooperation between EU member states

The DAC 7 Directive aims to strengthen cooperation between the tax authorities of the Member States of the European Union. It supports the rapid growth of the digital economy while encouraging taxpayers to comply with their tax obligations. The platform is only required to report users who have reached a certain revenue threshold.

As a general rule, all platforms must report data related to transactions made by their users for tax purposes. All sellers of products, goods, services or classified ads who meet these conditions within a year will therefore transmit their information to the tax authorities before January 31, 2024.

Declaration thresholds and new European regulations

From 2020, collaborative economy platforms must send a summary of transactions made by their users during the previous year to the tax administration. This year, with the entry into force of the European DPI-DAC7 system, platforms such as Airbnb and Leboncoin will have to make their declarations in this new format, which aims to harmonize practices across the continent.

Information required for declaration

All platforms located in France or abroad with users residing in France or selling on French territory must send a summary file to the General Directorate of Public Finance summarizing the number and amount of operations carried out by their users during the last year. If the user exceeds both thresholds, the platform must declare their income to the tax authorities.

• Last Date of Declaration: January 31, 2024.
• Reporting Threshold: Platforms should only report users who have reached a certain revenue threshold.
• Conditions: All sellers of products, goods, services or classified ads must comply with these terms for one year.

Sanctions in case of non-compliance with the platform

Platforms that do not comply with the obligation to inform users of their tax and social obligations may be subject to a fixed penalty of up to €50,000.

Tips for users

Users are advised to carefully inform themselves about their tax status and to check whether their income generated from the use of this platform should be disclosed to the tax authorities. In some cases it may be a professional or commercial activity that must be registered with the relevant authorities.

• Check your threshold: Only individuals meeting certain income thresholds will be considered.
• Fulfill Responsibilities: Users have until the end of the year to comply with this regulation.
• Secure payment: It is recommended to favor secure payment methods offered by the platform during transactions.

How to declare income from extra activities?

For additional information on declaring income from additional activities such as carpooling, rental of furnished real estate or sale of goods, you can consult the official French government sites: impots.gouv.fr.

In conclusion, the new rules aim to harmonize practices at European level and enable better cooperation between Member States’ tax authorities. Users of online platforms should therefore ensure that they comply with tax obligations to avoid restrictions or tax adjustments.