Last month we reported on the OECD’s Model Reporting Rules for Digital Platforms, and the key takeaways from the government’s consultation outcome on the implementation of these rules.
HMRC have now published draft regulations (18 October) incorporating the OECD’s Model Reporting Rules for Digital Platforms, which will be of interest to digital platforms which facilitate the provision of various services such as taxi and private hire services, food delivery services and freelance work, as well as sales of goods or the rental of property or transport. The government is seeking technical feedback on the draft regulations until 13 December 2022 to help inform areas which will need further clarification in detailed guidance to follow. HMRC will also be happy to meet with businesses to discuss technical concerns raised by the draft regulations. The final regulations are expected to be made in early 2023 to come into force on 1 January 2024.
In addition to reaffirming the penalties for failure to comply, HMRC outline additional notable points including: (1) the requirement on reporting platforms to keep records for a period of 5 years of the steps taken to comply with the regulations (including of the information collected in the course of applying the requisite due diligence procedures); (2) the obligation on platforms to notify HMRC if it will be subject to these rules or will fall within an exemption; (3) that reporting platforms will not be required to report information about a reportable seller where the platform reasonably believes that another platform is required (and will) report the information it would have otherwise reported in respect of that seller, and (4) that reports will need to be made electronically using an electronic report system in accordance with directions (to be) provided by HMRC, which, if not made in the required format, will not count as having been made. Further detail is pending on the electronic report system which will need to be used by platforms.