What is DAC7 and how does it affect invoice data reporting?
Effective: 2023-01-01 · Authority: European Council (DG TAXUD)
DAC7 (Directive on Administrative Cooperation 7) requires digital platform operators to collect, verify, and report seller information and income data to tax authorities annually from January 2023. While not an invoice mandate, it creates parallel reporting obligations that intersect with invoice compliance for marketplace and gig economy platforms.
Which platforms are subject to DAC7?
DAC7 applies to digital platform operators that facilitate transactions in four categories: rental of immovable property, personal services, sale of goods, and rental of transport. Platforms must collect and verify seller identification data, track consideration paid, and report annually to the tax authority of their member state of registration.
Frequently Asked Questions
- Does DAC7 require platforms to issue e-invoices?
- No. DAC7 requires data reporting about sellers and their income, not e-invoice issuance. However, platforms that issue invoices on behalf of sellers must ensure those invoices are compliant with national VAT invoice rules for the jurisdictions in which sellers operate.
- When must DAC7 reports be submitted?
- Platform operators must submit DAC7 reports by 31 January each year for the preceding calendar year. The first reports covering 2023 data were due by 31 January 2024.
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