January 18th, 2024

DAC 7’s purpose is to tax non-reported income arising from digital platforms, including penalty fees at the discretion of member states for users that do not comply, and to apply automatic exchange of information between member states on this issue.

DAC 7 applies both to EU and non-EU online platforms selling or facilitating the sale of goods & services, including transport and real estate. This also includes platform operators which are not EU resident and/or do not have PE in the EU.

Digital Platform operators need to collect and report the Seller’s details on the following:

The reportable seller’s personal information (name, date of birth, primary address). This excludes non-reportable sellers such as government entities, publicly traded entities, hotel chains, tour operators, to name a few.

PE, if any used to run business in the EU.

Tax identification number (TIN and/or VAT number)

Business registration number.

Transaction amounts.

Financial accounts used.