A man smiling while talking on a cell phone.

Are your Affected by DAC7?

Many businesses are unaware of the potential impact of DAC7 on their operations. Don't leave it to chance - take our quick test to find out if your company is affected by DAC7 regulations. Ensure you're informed and prepared to navigate this complex legislation by understanding your obligations and potential risks.

Do the test

A woman wearing glasses looking at a laptop.

How will DAC7 impact platforms?

Gain valuable insights on the implications of DAC7 for digital platforms and businesses. Watch our informative webinar, led by industry experts, to learn about the challenges and opportunities presented by this regulation. Equip yourself with the knowledge to adapt and thrive in the changing landscape of international taxation. Don't miss out - access the webinar now.

Watch the webinar

What is DAC7?

DAC7 is a directive on cooperation between different EU member states on gathering and reporting data about natural and legal entities and their earnings through digital platforms and marketplaces.

‍

Consequently, certain digital platforms will be responsible for collecting, verifying, updating, and reporting data about the sellers in the platform and their earnings. Digital platforms have to start collecting data from the 1st of January 2023.

‍

Furthermore, the digital platform has to submit its first report by the 31st of January 2024. Bear in mind that different EU countries may implement the Directive slightly differently. However, this should serve as a general guideline for the minimum requirements.

What do I have to do?

If you are responsible for reporting DAC7 data, there are a few things that you need to do. In brief, you need to (1.) collect data, (2.) verify data, (3.) update and manage data, and (4.) report data. These steps are described briefly below.

Where do I report?

The digital platform shall report the data collected about the seller as well as the payments going through the platform. The digital platform is responsible to submit the reports to the competent authorities in one jurisdiction. The competent authority will then forward it EU country in which the Seller is based. The jurisdiction, in which the digital platform reports, depends on where the digital platform is located and its corporate structure. A simplified list can be found below: 

A digital platform that is based in only one EU country, has its management in only one EU country, or has a permanent establishment in only one EU country shall report the data to the competent authority of that country. 
A digital platform that is based in several EU countries, has its management in several EU countries, or has a permanent establishment in several EU countries shall report the data to the competent authority of its election. 
A digital platform that is not based in an EU country, does not have its management in an EU country, or does not have a permanent establishment in several EU countries, shall register with the competent authority in the EU country of its choosing and report the data there.

Consequences of non-compliance

The EU-member states may set their penalties for non-compliance with DAC7 independently. However, DAC7 states that the penalties should be “effective, proportionate and dissuasive”. The Member States and their competent authorities are responsible to implement DAC7 into their laws and regulations. Consequently, there may be discrepancies between the penalties in the different Member States. Furthermore, the penalties may be decided on a case-by-case basis depending on the seriousness of the offense. Furthermore, the Member States shall take coordinated action against non-EU digital platforms that are not fulfilling the requirements. This involves making it difficult or impossible for those digital platforms to operate.

A man laughing while looking at his cell phone.

Insights from our experts

Keep yourself updated with the latest news, insights and strategies about the finance side of the Creator Economy

DAC7: Why Is It A Good Thing For European Marketplace Businesses (UPDATED: July 2023)

Here are a few reasons DAC7 is a good thing for European marketplace businesses.

DAC7: What Platforms Must Know About The New DAC7 Directive (UPDATED: July 2023)

This guide exposes everything you must know about the new DAC7 Directive, and how to prepare before its activation.

DAC7: What Is DAC7 And Why You Should Care (UPDATED: July 2023)

DAC7 is a new directive imposed on digital platforms by the EU council. This article will give you a quick insight on DAC7, and why you should care.

DAC7: What Does It Mean For The Creator Economy (UPDATED: July 2023)

By 1st January 2024, data will need to be reported for DAC7. Here's what DAC7 means for the creator economy, and to digital platforms and creators.

DAC7: How Your Platform Can Become Compliant (UPDATED: July 2023)

Find out how the new DAC7 directive will impact your digital platform, and how you can get ready before 1st January, 2024.

DAC7: 5 Key Actions You Can Take Now (UPDATED: July 2023)

Believe it or not, DAC7 is here! Here are 5 key actions you can take to prepare your platform for the new directive.