EU DAC 6 Disclosure Requirements for Cross-Border Arrangements

Read about new cross-border compliance requirements across Europe...

The introduction of the new European Union (EU) Mandatory Disclosure rules (DAC 6) aims to implement procedural compliance requirements for intermediaries and taxpayers to disclose 'potentially aggressive tax planning arrangements' by intermediaries or taxpayers to the relevant tax authority. Subsequently, all tax authorities in the EU will then exchange received reportable disclosures amongst one another on a quarterly basis.

There will be differences in approach by different EU Member States. Therefore, it is important that intermediaries and taxpayers understand how they may be affected and put in place procedures to identify whether their cross-border transactions fall within one of the hallmarks. Below we have summarised the key points by country. For more information, please contact us.

Country Date Rules Take Effect Includes VAT? Reporting Format Reporting Language Annual
Reporting
Obligation
for Taxpayer
Fines
Austria 1 Jan 2021 Yes Web or paper form Official language / English No Up to EUR/€50k
Belgium 1 Jan 2021 No XML Official languages / English No Up to EUR/€100k
Czech Republic TBC No XML Official language No Up to CZK/Kč500k
Denmark 1 Jan 2021 No Web based form Official language / English No Up to EUR/€54k
Finland 1 July 2020 No Txt file or paper form Official language / English No Up to EUR/€15k
France 1 Jan 2021 No Web based form Official language Yes Up to EUR/€100k
Germany 1 July 2020 No XML Official language Yes Up to EUR/€25k
Ireland 1 Jan 2021 No XML English Yes Up to EUR/€9k
+ unlimited daily penalties
of up to €500 per day
Italy 1 Jan 2021 TBC TBC Official language - TBC
Luxembourg 1 Jan 2021 Yes XML English Yes Up to EUR/€250k
Malta 1 Jan 2021 No TBC Official language / English No Up to EUR/€30k
Netherlands 1 Jan 2021 No XML English No Up to EUR/€870k
Poland TBC No XML Official language Yes Up to EUR/€20m
Portugal 1 Jan 2021 No Web based form Official language Yes Up to EUR/€160k
Romania The reportable
transactions for
which the first
step was made
between 25 June 2018
and 30 June 2020,
must be reported
by 28 February 2021.
The reportable
transactions for
which the first
step was made
between 1 July
and 31 December 2020
are reportable at
1 January 2021.
No TBC Official language Yes Up to RON/L100k
Spain 1 Jan 2021 No Web based form Official language Yes Up to EUR/€6k
+ additional penalties
related to the fees paid
to intermediaries
Sweden 1 Jan 2021 No XML Official language / English No Up to SEK/kr150k
United Kingdom 1 Jan 2021* No XML English Yes Up to GBP/£5k
+ unlimited daily
penalties of up to
£600 per day

*The UK’s starting date is after the expected date for the end of the Brexit transition period, so it is possible that the rules might never take effect in the UK