CFE Opinion Statement on the OECD Public Consultation on Proposed Targeted Amendments to the Model Reporting Rules for Digital Platforms
CFE Tax Advisers Europe has submitted an Opinion Statement in response to the OECD public consultation on proposed targeted amendments to the Model Reporting Rules for Digital Platforms.
The consultation seeks to refine the Model Rules in light of implementation experience, including by simplifying reporting for low-value transactions, clarifying key definitions and addressing duplicate reporting and intermediary seller arrangements.
In its submission, CFE supports the OECD’s targeted approach to revising the Model Rules, whilst emphasising that the framework should remain proportionate, practical and internationally coherent. CFE considers that reporting obligations should be allocated to the entity best placed to obtain and verify reliable information, with particular attention given to legal certainty, avoiding duplicate reporting and maintaining alignment with the EU’s DAC7 framework.
Simplifying Reporting for Low-Value Goods
CFE supports the proposal to replace the existing dual threshold for Excluded Sellers dealing in low-value goods, i.e. fewer than 30 transactions and consideration not exceeding EUR 2,000, with a single monetary threshold. CFE considers that a monetary test would be simpler to administer and more closely connected to the economic scale of a Seller’s activities, although it does not express a view on whether the proposed EUR 3,000 threshold is the appropriate amount.
The Statement recommends that the OECD Commentary provide further clarification concerning refunds and cancellations, transactions involving multiple currencies, instalment payments and transactions conducted through several interfaces forming part of the same Platform. CFE stresses that these practical issues should not be left to divergent domestic interpretation.
Clarifying the Definitions of Platform & Platform Operators
CFE welcomes the proposed clarification that a Platform may comprise several functionally integrated websites or applications and that a Platform Operator may make a Platform available directly or indirectly on behalf of Sellers. It also strongly supports confirmation that entities acting solely as payment processors should not be treated as Platform Operators.
The Statement nevertheless recommends further practical guidance on what constitutes functional integration, including factors such as common branding, shared user accounts, integrated contracting processes, coordinated transaction flows and connected data systems. CFE also calls for clearer distinctions between Platform Operators and entities providing ancillary services such as software, hosting, advertising or customer support.
Reducing Duplicate Reporting & Intra-Group Obligations
CFE supports the proposal that, where a Seller is itself a Reporting Platform Operator in the same or a Partner Jurisdiction, reporting should generally be limited to identifying information and tax residence rather than duplicating transaction-level information. The Statement recommends that Platform Operators should be able to rely on written confirmation of a Seller’s status unless they know, or have reasonable grounds to know, that the information is incorrect or unreliable.
CFE also supports treating Related Entities as Excluded Sellers and allowing Platforms used exclusively for Related Entities to qualify as Excluded Platform Operators. The Statement considers that intra-group transactions generally present a lower transparency risk, whilst recommending further guidance concerning indirect ownership, changes of control, reorganisations, joint ventures and Platforms used by both related and unrelated Sellers.
Intermediary Sellers & Access to Reliable Information
The treatment of intermediary sellers is identified as an area requiring particular care in the submission. CFE recognises the need for reporting to identify the person ultimately deriving income from a Relevant Activity but cautions against an overly broad extension of Platform Operator status to intermediaries that do not have practical access to the information required to comply.
CFE recommends that obligations be based on objective legal criteria and practical access to reliable information, with the analysis focusing on an intermediary’s substantive role rather than contractual terminology. The Statement also stresses that the rules should prevent duplicate reporting and limit obligations to information that reporting entities can reasonably obtain through their ordinary commercial relationships and due diligence processes.
The submission calls for additional examples covering common commercial arrangements, including property management companies, online travel agencies, ride-hailing structures, franchise and licensing arrangements and models in which different entities perform customer-facing, contracting, payment and technology functions. CFE recommends further testing of the proposed criteria against real-world business models before amendments are finalised.
Proportionality, Implementation & International Consistency
A central message of CFE’s submission is that the effectiveness of the Model Rules depends on the relevance and reliability of information collected rather than simply its volume. CFE therefore encourages proportionate obligations, clear definitions and objective tests that minimise unnecessary compliance costs and support consistent application across jurisdictions.
The Statement stresses that updated OECD Commentary and practical examples will be essential to successful implementation. Final guidance should be available sufficiently in advance of the first reportable period to allow jurisdictions to legislate and Platform Operators to adapt their onboarding, due diligence and reporting systems, with appropriate transitional periods where material system changes are required.
CFE also encourages the OECD to maintain broad alignment between the revised Model Rules and domestic regimes implementing them, particularly the EU’s DAC7 framework, so that internationally operating Platform Operators are not required to develop materially different systems for economically comparable obligations.
Conclusion
Overall, CFE supports the direction of the OECD’s proposed targeted amendments, which seek to simplify low-risk reporting, clarify fundamental definitions, reduce duplicate reporting and introduce proportionate treatment of intra-group arrangements. CFE emphasises that particular care should be taken in developing the rules for intermediary sellers and that comprehensive Commentary, representative examples and adequate implementation time will be important to achieving consistent and administrable outcomes.
CFE appreciates the opportunity to contribute to the consultation and looks forward to continuing its constructive engagement with the OECD on international tax transparency standards.
We invite you to read the Opinion Statement and remain available for any questions you may have.
