Sailing New E-Commerce Waters: The Dawn of DAC6 and DAC7 in Malta


Introduction to the Series:

In the dynamic realm of e-commerce, regulatory frameworks play a crucial role in shaping the trajectory of growth and compliance. The introduction of the EU’s Directive on Administrative Cooperation (DAC6 and DAC7) marks a significant milestone for Malta’s digital commerce landscape. This series of blog posts aims to shed light on the nuanced changes these directives bring forth and their impact on e-commerce in Malta.

Unveiling the New Horizons: Understanding DAC6 and DAC7

In the contemporary tapestry of the European business landscape, the alphabets DAC6 and DAC7 have recently emerged as prominent threads. These aren’t arbitrary letter-number combinations, but represent key directives from the European Union aimed at fostering a more transparent and cooperative commercial environment across member states. As Malta stands at the cusp of a digital commerce revolution, understanding the ramifications of these directives is pivotal. Let’s embark on an explorative journey to unravel the essence of DAC6 and DAC7 and their relevance to Malta’s burgeoning e-commerce sector.

The ABCs of DAC6:

DAC6, also known as the sixth Directive on Administrative Cooperation, introduces Mandatory Disclosure Rules (MDRs) for intermediaries and relevant taxpayers. This directive primarily targets cross-border tax arrangements that could potentially be used to skirt around tax obligations. By necessitating the reporting of such arrangements, DAC6 aspires to promote transparency, deter aggressive tax planning, and align tax contributions with actual economic activities and value creation. It’s a step towards ensuring that businesses operate within a framework of fairness and contribute their rightful share to the public coffers.

DAC7: A Digital Bridge:

The seventh iteration, DAC7, extends the directive’s scope to the digital realm. It mandates operators of digital platforms to report the income earned by sellers on their platforms to tax authorities. This directive acknowledges the monumental shift towards digital commerce and aims to ensure that the tax systems evolve in tandem with this digital transformation. DAC7 strives to ensure that individuals and businesses monetising through digital platforms are contributing their fair share of taxes, promoting a more equitable digital commerce ecosystem.

Malta’s Regulatory Resonance:

Malta, with its robust e-commerce sector, finds itself at a crossroad with the advent of DAC6 and DAC7. The directives present an opportunity to reinforce and realign the regulatory framework to resonate with the broader objectives of transparency and cooperation championed by the EU. The initial response from the e-commerce sector has been constructive, with stakeholders recognising the long-term benefits of adhering to a harmonised regulatory framework that fosters transparency, compliance, and fair competition.


The acronyms DAC6 and DAC7 represent more than just regulatory mandates; they signify a shift towards a more transparent and cooperative commercial ecosystem in the EU. For Malta, adapting to these directives is synonymous with evolving its e-commerce landscape to meet the contemporary demands of digital commerce. As we align our regulatory compass with these directives, the horizon of digital commerce in Malta appears promising, marked by transparency, cooperation, and a level playing field for all.

In the subsequent blog posts, we will delve deeper into the compliance journey under DAC6 and DAC7 for e-commerce businesses in Malta, and explore the support mechanisms available to navigate this new regulatory landscape. Stay tuned as we unfold the various facets of DAC6 and DAC7 and their impact on the e-commerce domain in Malta.

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