The cross-border dimension of services offered through the use of platform operators has created a complex environment where it can be challenging to enforce tax rules and ensure tax compliance. This lack of tax compliance has led to a significant value of unreported income.
The European Commission has recognized the need of extending the scope of the automatic exchange of information in order for the tax authorities of Member States to have a broader set of cooperation tools at their disposal, to detect and tackle forms of tax fraud, tax evasion and tax avoidance. For this reason, the Council of Europe amended Directive 2011/16/EU by issuing a new Directive (EU) 2021/514 regarding the mandatory exchange of information in relation with the cross-border and non-cross-border transactions of platform operators.
Here you can find information regarding the application of the relevant Directive