Implementation of DAC7 Compliance for Digital Platforms in the EU

Published on: Oct 2024
By Johann Rozario, Product Implementation at Supplied Technologies B.V.

In line with the EU’s increasing focus on tax transparency in the digital economy, DAC7 is now in full effect, introducing essential requirements for digital platforms operating across Europe. DAC7 mandates that platforms gather, verify, and report specific seller information, underscoring a new level of accountability. With the 2025 reporting deadline on the horizon, this overview highlights DAC7’s scope, outlines obligations, and explains how Supplied’s end-to-end solution enables seamless compliance.

What is DAC7 and does it apply to you?

DAC7 applies to platforms facilitating specific online transactions, such as sales of goods, rental of properties, transportation, and services, with a few notable exemptions. To fall under DAC7, platforms must connect buyers and sellers, facilitating transactions rather than simply referring or advertising. Platforms meeting these criteria, especially those with any EU-based sellers, should prepare for compliance. 

Several thousands of platforms fall into the scope of DAC7 in the Netherlands and the types of platformsacross E-Commerce, Marketplaces, Gig Economy, Real Estate, Rentals, Travel and Cross-border trade

A checklist provided by Supplied helps platforms determine if they are in scope, looking at factors such as transaction type and geographic reach. Confirming DAC7 requirements as they apply to each platform is crucial to avoid last-minute scrambles.

Obligations for DAC7 Compliance: Due Diligence, Notification, and Reporting

DAC7 establishes a three-pronged compliance structure, each crucial to reducing tax evasion and ensuring transparent data reporting.

Due Diligence

Platforms in scope must perform due diligence on the data they report. This includes collecting and validating personal, business, and tax information for their active sellers, preventing errors that could result in fines or additional scrutiny from tax authorities. Supplied’s solution integrates with the Chamber of Commerce, VAT databases, and ID checks, offering real-time, automated verification that ensures accuracy and consistency.

Supplied offers a unique white-labeled self-verification app, allowing sellers to independently verify and update their data. This app, the only one of its kind, reduces manual data entry and creates an efficient, error-free compliance workflow that has saved some clients over 85% in operational overhead. Missing or incorrect seller data is flagged in the platform’s intuitive dashboard, enabling proactive adjustments before submission.

Seller Notifications

Transparency is essential. Platforms must inform sellers of the information reported to tax authorities. Supplied automates this through customizable seller notifications, allowing each seller to receive a PDF statement detailing the data collected and shared. This added step builds trust and reinforces a transparent platform environment.

Report Generation and Submission

The DAC7 reporting process includes compiling verified seller data and generating an XML declaration that complies with EU tax authority standards. Supplied, in partnership with CreAim, simplifies this complex process by handling XML generation, validation, and secure submission with receipt tracking for complete peace of mind.

Why Choose Supplied for DAC7 Compliance?

Supplied offers the Netherlands’ only fully integrated DAC7 solution, crafted by industry experts with decades of experience in compliance, supply chain management, and onboarding. Here’s what makes our DAC7 solution unique:

• Comprehensive and Cost-Effective: We provide all essential DAC7 services—due diligence, notifications, and reporting—at one of the most competitive rates available. Full reporting packages begin at €1,499 and include 12 months of corrections and support, making DAC7 compliance accessible for platforms of any size.
• Ease of Use and CRM Integration: Supplied prioritizes a user-centric design. Automatic data collection and verification, PDF seller notifications, and CRM integration streamline data synchronization, saving platforms from repetitive tasks.
• Proven Track Record and Client Trust: Recommended by leading accounting firms, Supplied’s DAC7 solution has received highly positive feedback for its functionality, user experience, and competitive pricing. Clients appreciate our reliability and attention to detail, with ISO and GDPR compliance ensuring privacy and security.

Don’t Wait Until the Deadline

The DAC7 reporting deadline for transactions in 2024 is set for January 31, 2025. Starting early is essential to avoid the stress of last-minute data collection and reporting. Supplied’s continuous, year-round support model enables platforms to proactively manage seller data, ensuring consistent compliance and peace of mind.

To ensure full DAC7 compliance and avoid penalties, take action today. Supplied offers a demo account so you can experience our platform’s features firsthand, with guided support available at every stage.

Get Started with Supplied

Get a head start on DAC7 compliance by trying our demo today. Connect with our team or email us at support@supplied.eu, and let Supplied help you navigate DAC7 with confidence and efficiency.

Category(ies): Digital Compliance, EU Regulations, SaaS, Fintech, Tax Solutions

‍