- On 24 June 2026, the European Commission (EC) released its proposal for the recast of the Directive on Administrative Cooperation (DAC). The proposal consolidates the multiple DAC iterations into a single legislative instrument, with the aim of simplifying compliance, improving consistency across member states and reducing administrative burdens for taxpayers, intermediaries and tax authorities. The key elements are:
- Aligning reporting under DAC4 and DAC9, enabling multinational groups to submit a single notification for both regimes.
- Simplifying platform reporting under DAC7 by increasing the reporting threshold for online sales of goods from EUR 2,000 to EUR 3,000 and removing the transaction-count threshold, reducing reporting for low-value and occasional sellers.
- Reducing reporting burden under DAC6, including removal of arrangements relating to entities in scope of Pillar Two, extension of the reporting deadline, and the removal of certain generic hallmarks considered to provide limited value.
- Modernising digital tax reporting via an EU-wide taxpayer identification number (TIN) verification tool, allowing verified taxpayers to be reported using a reduced set of identification data.
- Enhancing automatic information exchange, including the addition of beneficial ownership information for immovable property.
- Broadening tax authorities’ access to data, including certain data held by other government agencies, to support more effective information exchange and risk assessment.
- Timing: the Irish Presidency of the EU Council aims to adopt the proposal by the end of 2026, with the transposition by member states during 2027, with a view for an effective date in 2028.
Resources (click to open)
- European Commission proposes DAC recast (Deloitte tax@hand, June 2026)
