Romania: DAC7 reporting for marketplace operators


Government Ordinance no. 16/2023, published in Official Gazette no. 86/31.01.2023, introduces important amendments to the Romanian Fiscal Procedure Code by transposing the provisions of EU Directive 2021/514, also known as the DAC7 Directive.

One of the most important changes brought by this new piece of legislation is that, since 3 February 2023, a new reporting obligation applies to companies operating online market-places (“Operators”) used by private and corporate merchants (“Merchants”) to sell goods or to provide personal services, property rental services or rental services for means of transport.

The required reporting includes extensive information about the Merchants’ identity, activity and related financial dealings and will be submitted annually to the Romanian tax authorities. As part of a tax due diligence process required under DAC7, Operators will be required to collect extensive information from the (private or corporate) Merchants they work with and to validate said information to the extent possible using means that include all public sources. The deadline for finalizing the aforementioned tax due diligence report is 31 December of the relevant reporting year.

The first annual DAC7 report is due by 31 January 2024 for activities carried out in 2023.

Operators will need to apply for special registration with the Romanian tax authorities in order to be able to comply with the new reporting obligation. Operators that fail to comply with the new requirements in Romania may face a fine of up to €20,000, the cancellation of the above-mentioned registration and a prohibition to con-duct business in Romania or anywhere in the European Union.