Before we discuss the new reporting rules for digital platforms, we first should clarify what a digital platform is. In this case it can be defined as a website or application that enables transactions between people who are selling products or services and customers who purchase them. This does not necessarily mean that the platform has to facilitate payments in the transactions to fit the definition of a platform. Software can also be considered as a digital platform if it meets certain criteria including:
- Users can access it and it allows sellers to connect to customers
- It facilitates sellers providing goods or services to customers
- The payments made to the seller are known or roughly known by the platform operator
A fundamental part of what makes a platform is that registered, third party sellers need to be connected to users using the platform to complete the payment. It’s also important to note that a website, software, or app that is run by a business to only sell its own products or services does not fit the definition of a platform because it doesn’t connect third party sellers to users.