Tired of complex tax rules? The EU’s DAC7 Directive simplifies things for digital platforms like yours and their sellers. Here’s your 2024 update on what you need to know!

What is DAC7?

Simply put, DAC7 requires platforms to report income & activity details of certain sellers to tax authorities. This ensures fairer competition and improves tax collection across the EU.

Who’s affected?

Platform operators: If you facilitate activities like rentals, sales, or services, you likely need to report.
Sellers: If you earn income through eligible platforms, your information may be reported.
What’s reported?

Sales amounts
Rental income
Service fees
Seller identification details

When does it start?

It’s already in effect! Most platforms started reporting income earned by sellers since January 1, 2023.

What do you need to do?

Platform operators: Understand your reporting obligations and procedures. Check out the resources below for specific guidance.
Sellers: Stay informed about what data is reported and be ready to comply with your own tax obligations.
Benefits for everyone:

Level playing field: Ensures equal tax treatment for traditional and digital businesses.
Accurate tax collection: Helps governments collect fair taxes, benefiting society as a whole.
Reduced red tape: Streamlines reporting for platforms and sellers.
Still confused? Don’t worry! We’ve got you covered:

For platform operators: Uber, Airbnb, Etsy or fiverr…
For sellers: Anyone that creates an account over those platforms. 

This is just the beginning! As DAC7 evolves, we’ll keep you updated. Be sure to check back for the latest information and guidance.

Remember: Consult us as  for personalized advice.

Thank you  for reading this post, if you think we have been able to help you or if you still have any questions, you can always contact me via WhattsApp (+49 1520 8381499) or e-mail (erica@taxandlawspain.com).