DAC7, the seventh version of the EU Directive on Administrative Cooperation in Taxation, mandates that digital platform operators report specific information about their sellers to tax authorities. With the transposition of this directive into law by EU member states, operators needed to file their first reports by 31 January 024

However, since 1 January 2023, these operators have been required to collect relevant data, increasing the urgency for compliance among both platform operators and their sellers.

Understanding DAC7

DAC7 aims to enhance tax transparency and combat tax evasion by requiring digital platforms—ranging from online marketplaces to service providers—to gather and report detailed information about their sellers. This includes sellers engaged in activities such as livestreaming, food delivery, and ride-hailing. The directive not only applies to EU-based platforms but also to non-EU operators that facilitate sales or services within the EU.
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DAC7 Compliance Requirements

To comply with DAC7, digital platform operators must collect a comprehensive set of data from their reportable sellers, including:

• Legal name or individual’s name
• Primary address
• Tax Identification Number (TIN)
• VAT identification number (if available)
• Date of birth (for individuals)
• Business registration number (for entities)
• Information on any permanent establishments in the EU

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Operators are responsible for ensuring the accuracy of this information and may utilise third-party services for due diligence while retaining ultimate accountability.
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DAC7 Reporting Obligations

DAC7 requires annual reporting, with deadlines set for 31 January of the year following the identification of reportable sellers. Operators must file reports with the tax authority in their resident EU member state or choose one member state if they operate in multiple jurisdictions. The reports must include details about total sales and any fees or taxes charged.

Why Supplied is Your Ideal Partner for DAC7 Compliance

Supplied.eu is a premier solution for indirect tax reporting automation. Here’s why:

End-to-End Support: Supplied offers a comprehensive suite of tools designed to streamline every aspect of DAC7 compliance—from data collection to reporting. This includes automated solutions that simplify the generation and submission of compliant reports.

Automation and Efficiency: With Supplied's advanced ID & Transform product, platforms can automate the collection of necessary seller information during onboarding and convert data into DAC7-compliant XML format effortlessly. This reduces manual effort and minimises errors associated with data handling.

Centralized Management: Supplied provides a centralized online tool that allows platform operators to manage seller information and reporting seamlessly. This feature enhances visibility and control over compliance processes.

Personalized Consultations: Understanding that each business has unique needs, Supplied offers tailored consultations to help platforms comprehend the implications of DAC7 on their operations, ensuring they are well-prepared for compliance.

Proactive Risk Mitigation: By leveraging Supplied’s solutions, digital platforms can proactively address potential compliance risks associated with DAC7 reporting, thereby safeguarding against penalties imposed by EU member states for non-compliance.

In summary, as digital platforms gear up for DAC7 compliance, partnering with Supplied.eu ensures not only adherence to regulatory requirements but also positions businesses for operational efficiency and enhanced tax reporting capabilities.

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