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.
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|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