According to the MRDP framework, service platform operators have to collect information through these platforms to provide information on accommodation, transportation and individual sellers. This information is reported to the relevant tax authorities and then for information exchange between the tax authorities.
Digital platform operators should perform due diligence check to identify and verify the platform operators’ detailed information. Information should include seller’s name, address, date of birth, tax residency and Tax Identification Number (take Taiwan for instance, it is the Identification Number or Unified Business Number), Business Registration Number or transaction fees received by platform operators etc.
In addition, some smaller scale new platform operators can be exempted from this filing rules by proving they satisfy certain conditions. Before the filing rules become official, sellers should be provided with a transition period. Under this rule, annual filing is required and the filing date should be before Jan 31 the year after the filing year.
In the future, sellers on the digital platforms providing services will be requested to disclose individual tax information to the relevant countries and tax authorities will be able to receive more information for taxation purposes...
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