Previously, platforms voluntarily exchanged information with the MTA. As of last year, however, it is mandatory for platforms themselves to collect this information.

This year marked the first time that platform administrators submitted data to the MTA regarding income users had earned through their platforms during the previous year. Based on the data received thus far, nearly 20,000 individuals earned income on these platforms, and now the Tax Board will begin comparing this information to that reported by these individuals on their own personal tax returns.

If income has been deposited in an individual's bank account, this must also be reflected on their income tax return. Although the deadline for filing has already passed, the MTA nonetheless advises people to double-check whether all income earned via platforms was reported on their income tax return and, if needed, amend their return accordingly.

Should any discrepancies be identified between the data provided by the platforms and the information on an individual's income tax return or in their business account report, however, the tax authority will get in touch. The MTA has the right to demand the retroactive correction of tax returns for a period of up to three years or themselves determine an individual's tax liability, but now with interest added.

"On top of more efficient checks, the purpose of this data is to make it easier in the future for individuals to declare income earned through platforms," explained MTA Director General Raigo Uukkivi. "Based on the data collected, we plan on pre-filling income tax returns, as we already currently do with wage data."

Preliminary data indicates that a very large share of people who earned income via platforms fulfilled their reporting and tax obligations by using a business account. According to Uukkivi, this is the easiest way for people who operate on these platforms to pay their taxes.

"Fees for provided services are deposited into the business account, at which point taxes are paid automatically," he described, noting that due to their ease and convenience, the use of business accounts is getting increasingly popular.

"Over the past three years, the number of users and the amounts deposited into [business accounts] have doubled," the tax chief highlighted. "Figures for the first quarter of this year indicate that that growth may continue at the same rate this year."

Obligations extend to Stebby, Yaga and others too

Platform administrators are obligated to provide information about all of their users engaged in renting real estate for money through their platforms, including, for example, short-term rentals of accommodations on Airbnb; time- or task-based provision of services, such as offering massage services on Stebby; the sale of items, such as selling handicrafts on Yaga; and leasing or renting out means of transport, such as renting out a car via Autolevi. This obligation applies to Bolt and Wolt as well.

"These are likewise platforms, and this is the provision of a service, and active income generated from someone's activity, such as food couriers or drivers, is taxed with all labor taxes and must be properly declared," said Kertu Laadoga, media relations specialist at the MTA.

Data is provided for both Estonian and other EU member state taxpayers operating on a platform, and according to the Estonian tax chief, the MTA forwards information regarding taxpayers from other member states to the relevant countries' own tax authorities.

"It is on that same principle that other member states also forward to us the information collected from platform administrators in their own countries regarding Estonian taxpayers," Uukkivi added.

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