Concept Definition
What is DAC7?
DAC7 (Directive on Administrative Cooperation 7) is an EU directive requiring digital platform operators to collect and report data about sellers using their platforms to EU tax authorities. It covers platforms facilitating services, goods sales, rental of transport, and rental of immovable property. Reporting started for 2023 data.
What platforms and activities does DAC7 cover?
DAC7 covers platform operators facilitating:
- Personal services: Freelance work, delivery, gig economy services.
- Goods sales: Online marketplaces selling physical goods.
- Rental of immovable property: Short-term rental platforms.
- Rental of transport: Vehicle rental platforms.
- Not covered: Pure payment processors, platforms with below-threshold sellers.
Frequently Asked Questions
- What data must be reported under DAC7?
- DAC7 requires platforms to report seller's name, address, tax identification number, VAT number (where applicable), bank account details, and transaction revenue by category. The first report covering 2023 data was due to member state tax authorities by January 31, 2024.
- Does DAC7 apply to non-EU platforms?
- Yes. Non-EU platforms facilitating transactions with EU sellers or buyers must comply with DAC7 if they are not subject to equivalent reporting requirements in their home jurisdiction. Non-EU platforms must register with an EU member state tax authority to comply.