DAC6 flow chart – Which transactions are reportable under DAC6?

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DAC6 screenshot of interactive flowchart
Our DAC6 course, DAC6: Advanced, follows an interactive flowchart to help intermediaries fully understand their reporting requirements under DAC6

On 25 May 2018, the Economic and Financial Affairs Council of the European Union (ECOFIN) adopted Council Directive (EU) 2018/822, also known as the 6th Directive on Administrative Cooperation (DAC6), requiring tax intermediaries to report certain cross-border arrangements that contain at least one of the hallmarks defined in the Directive. The aims of DAC6 is to tackle tax evasion and avoidance, strengthen tax transparency and improve information sharing between EU Member States.

Count how many times you said the word “tax” this week. Easy? How about every time this month. Harder? All right, what about every time you said the word “tax” to a client in the last 18 months? Still confident about the number?

Now, think about every time that could have been construed as advice. What about doing transactions with other countries or thinking about tax planning measures? All of these instances might need to not only be remembered, but also recorded and reported to the national tax authority.

Welcome to DAC6 – the sixth EU Directive on Administrative Cooperation.

DAC6 is an EU directive aimed at cracking down on aggressive tax planning. The scope of the directive is very broad, and even arrangements without a particular tax motive may have to be reported.

Reportable transactions under DAC6 are those that have all the following features:

  • Involves at least one EU Member State
  • Goes across borders
  • Can be construed as being a tax planning arrangement
  • Falls within a number of hallmarks
  • Involves an intermediary (i.e. someone involved in a taxable transaction)

Free downloadable DAC6 flow chart

VinciWorks has created a DAC6 flow chart to help you determine whether your transaction is reportable. You can use this flow chart as a decision-making tool in your day-to-day work.

Download flowchart

DAC6 training and reporting solution

DAC6 reporting charts
VinciWorks’ DAC6 reporting portal allows administrators to review all reported transactions via easy-to-use charts and graphs

VinciWorks has developed a reporting and training solution to help organisations effectively track cross-border transactions and train their staff on their responsibilities. Our DAC6 reporting portal collects and records all relevant data in an easily accessible register. The portal can be customised to include questions specific to your industry or organisation. Our online DAC6 training suite provides the information and resources intermediaries need in an accessible format. Our core course, DAC6: Advanced,