The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023

PART 2 Due diligence, record-keeping and reporting obligations

Due Diligence and record-keeping

3.—(1) A reporting platform operator must establish and maintain procedures that are designed to—

(a) collect information about sellers,

(b) collect, where applicable, information about property listings,

(c) verify the information collected under sub-paragraphs (a) and (b), and

(d) identify reportable sellers in respect of each reportable period.

(2) A reporting platform operator must comply with paragraph (1) by applying the due diligence procedures set out in section II of the model rules.

(3) A reporting platform operator must keep a record of—

(a) the steps taken to comply with this regulation, and

(b) the information collected in the course of applying the due diligence procedures referred to in paragraph (2).

(4) A reporting platform operator must keep the records required by paragraph (3) for a period of five years beginning with the day after the end of the reportable period to which they relate.

(5) For the purposes of paragraph (4), records in respect of a particular seller relate to each reportable period in which the information was—

(a) collected,

(b) generated, or

(c) relied on under section II(F)(3) (reliance on due diligence procedures conducted in respect of previous reportable periods) of the model rules.

(6) For the purposes of paragraph (4), records which are not in respect of a particular seller relate to all reportable periods.

Reporting of Information

4.—(1) Subject to paragraph (5), a reporting platform operator must, for each reportable period, make a report to HMRC setting out the information in paragraph (2) on or before the 31st January following the end of the reportable period.

(2) The information is—

(a) in respect of the reporting platform operator, the information set out in section III(B)(1) (information to be reported with respect to reporting platform operators) of the model rules, and

(b) in respect of each seller identified as a reportable seller in respect of the reportable period, the information set out in section III(B)(2) (information to be reported with respect to reportable sellers that provided relevant services other than immovable property rental) or (3) (information to be reported with respect to reportable sellers that provided relevant services for the rental of immoveable property) of the model rules, or both, as applicable.

(3) Section III(A)(5) and (6) of the model rules applies to information with respect to consideration that is required to be included in a report.

(4) Subject to paragraph (5), where a reporting platform operator must make a report for a reportable period including information in respect of a reportable seller, the reporting platform operator must provide that reportable seller with that information by no later than the 31st January following the end of the reportable period.

(5) A reporting platform operator is not required to comply with paragraph (1) or (4) in respect of a reportable seller where—

(a) either—

(i) the reporting platform operator reasonably believes that another platform operator is required to, and will, include in a report under paragraph (1) the information it would otherwise be required to include in a report under paragraph (1), or

(ii) the reporting platform operator reasonably believes that another platform operator is required to, and will, report the information it would otherwise be required to include in a report under paragraph (1) to the tax authority of a partner jurisdiction under substantially similar rules, and

(b) the reporting platform operator gives notice to HMRC by no later than the 31st January following the end of the reportable period of—

(i) the fact that it relies on the exemption in this paragraph, and

(ii) such information regarding the other platform operator as is specified in a notice published by the Commissioners for HMRC under this regulation.

(6) The form and manner in which notice under paragraph (5) is to be given is specified in specific or general directions given by the Commissioners for HMRC.

Electronic report system

5.—(1) A report under regulation 4(1) must be made electronically using an electronic report system.

(2) The form and manner in which a report is to be made using an electronic report system is specified in specific or general directions given by the Commissioners for HMRC.

(3) A report which is made otherwise than in accordance with paragraphs (1) and (2) is treated as not having been made.

(4) An electronic report system must incorporate an electronic validation process.

(5) Unless the contrary is proved—

(a) the use of an electronic report system is presumed to have resulted in the making of a report only if this has successfully been recorded as such by the relevant electronic validation process,

(b) the time of making the report is presumed to be the time recorded as such by the relevant electronic validation process, and

(c) the person delivering the report is presumed to be the person identified as such by any relevant feature of the electronic report system.

Provision of Information

6.—(1) In order to determine whether or not the obligations arising under these Regulations have been complied with, an officer of Revenue and Customs may require a person who the officer reasonably suspects is a reporting platform operator to provide such information or documents as the officer reasonably requires as specified by written notice.

(2) The information or documents required by notice under paragraph (1) must be provided—

(a) within such period, being no less than 30 days, and

(b) by such means and in such form,

as is reasonably required by the officer of Revenue and Customs.

Notification to HMRC: reporting platform operators

7.—(1) A reporting platform operator must give notice to HMRC that it is a reporting platform operator by no later than the 31st January following the end of the first reportable period.

(2) The form and manner in which a notice under paragraph (1) is to be given is specified in specific or general directions given by the Commissioners for HMRC.

Notification to HMRC: excluded platform operators

8.—(1) A platform operator that relies on the excluded platform operator exemption (see paragraph (2)) must give notice to HMRC.

(2) A platform operator relies on the excluded platform operator exemption if—

(a) it is an excluded platform operator,

(b) it would be required to comply with regulations 3 (due diligence and record-keeping) and 4 (reporting of information) for a reportable period if it were not an excluded platform operator, and

(c) it does not, in fact, comply with one or both of regulations 3 or 4 in respect of that reportable period.

(3) Notice under paragraph (1) must be given by no later than the 31st January following the end of the first reportable period for which the platform operator relies on the excluded platform operator exemption.

(4) The form and manner in which notice under paragraph (1) is to be given is specified in specific or general directions given by the Commissioners for HMRC.

Notification to HMRC: application of the due diligence procedures to active sellers only

9.—(1) An election under section II(G) (application of the due diligence procedures to active sellers only) of the model rules must be made by notice to HMRC.

(2) Notice under paragraph (1) must be given by no later than the 31st January following the end of the reportable period to which it relates.

(3) A notice given under paragraph (1) has effect for the reportable period in which it is made, and for all subsequent reportable periods until it is withdrawn, including the reportable period in which it is withdrawn.

(4) The form and manner in which a notice under paragraph (1) is to be given and withdrawn is specified in specific or general directions given by the Commissioners for HMRC.

Excluded Sellers: proportional reduction of thresholds

10.—(1) Paragraph (2) applies where a seller is registered with a platform operated by a reportable platform operator for part of, but not the whole of, a reportable period.

(2) In determining whether the seller is an excluded seller for the reportable period, the following thresholds are to be proportionally reduced to reflect the fraction of the reportable period for which the seller was registered with the platform—

(a) the threshold of 2,000 relevant services per reportable period in section I(B)(4)(a) of the model rules,

(b) the threshold of 30 relevant activities per reportable period in section I(B)(4)(d) of the model rules, and

(c) the threshold of EUR 2,000 per reportable period in section I(B)(4)(d) of the model rules.

(3) The reduction under paragraph (2) is to be carried out by multiplying the threshold by a fraction whose numerator is the number of days during the reportable period for which the seller was registered with the platform and whose denominator is the number of days in the reportable period.