DAC6 Reporting – will the reporting starting date postponed due to COVID-19?

DAC6 Reporting – will the reporting starting date postponed due to COVID-19?

Acc. to the EU-Directive crossborder arrangements need to get reported to the tax authorities within 30 days starting July 1, 2020.

Due to the COVID-19 situation the German Industrial Association (BDI) has proposed to postpone the starting date to July 1, 2021 (https://bdi.eu/media/publikationen/#/publikation/news/acht-punkte-steuerplan-zur-bewaeltigung-der-corona-krise/).

In general, this seems quite reasonable, also considering the current technical issues with the reporting interfaces to the German Tax Authorities (BZSt).

However, the problem is that in a crossborder arrangement two jurisdictions are involved. So, even if only one country postpones the reporting, the reporting party faces the respective severe penalties in the other country. Therefore, a unilateral approach won’t work.

This in mind, we urgently recommend to ensure  that the DAC6 reporting can start in time – inspite of the Corona crisis!

In case you need support, we would be happy to help. Just let us know.

Stefan Kienzler, TAXCOMTECH