Introduction to DAC7

The implementation of DAC7 compliance in the Netherlands is set to transform digital platform reporting significantly. Small platform operators have been granted a temporary Dutch Tax Authority DAC7 grace period, allowing them extra time to adapt to these new regulations. However, proactive measures are essential for effective compliance. This article explores how small platforms can navigate DAC7 compliance and highlights how Supplied can assist in this process.

‍

If you’re unsure whether your platform is affected, complete our short survey here to find out immediately.

Understanding the Grace Period and Approval Process

The DAC7 grace period offers temporary relief for small platforms with minimal reportable items. However, careful preparation is crucial to leverage this leniency effectively.

Key Considerations:

• Approval Requirement: Platforms must obtain explicit approval from the Tax Authority to utilise the DAC7 simplified submission method. Without this approval, adherence to standard reporting requirements is mandatory, complicating administrative processes.
• Mandatory Data Preparation: Even during the grace period, platforms must collect and verify seller data (including KYC, KYB, and tax IDs) well in advance to ensure compliance with DAC7 regulations.
• Cost Implications: While government submission may be low-cost or free, the actual expenses stem from preparing accurate and verified data using seller data collection tools for DAC7.
  
  

Failing to act now could lead to substantial challenges as the final deadline approaches.

How Supplied Can Help Small Platforms

1. Simplifying Data Collection and Verification
   • Automate seller information collection using automated DAC7 reporting tools to minimise manual errors.
   • Verify data to ensure it meets DAC7 reporting standards.
   • Centralise seller information within a secure, GDPR-compliant seller verification tool.
     
     
2. Bridging the Gap Until Simplified Submissions Are Ready
   • Utilise Supplied’s built-in submission tools for direct reporting, ensuring compliance ahead of government processes.
   • Avoid reliance on external systems by using Supplied’s solutions for timely submissions.
     
     
3. Supporting Cost-Effective Compliance for Smaller Platforms
   • Automate manual processes with small platform DAC7 compliance solutions to reduce administrative costs.
   • Offer a centralised platform that minimises additional resource needs.
   • Provide flexible solutions tailored to specific platform requirements.

Should You Wait for the Government’s Simplified Method?

While waiting for the government's streamlined submission method may seem beneficial, several factors warrant consideration:

• Approval Delays: Securing approval may take time, introducing uncertainty regarding compliance deadlines.
• Preparation Necessity: Comprehensive seller data verification is still required, which can be resource-intensive without appropriate tools.

Supplied equips platforms with essential tools for data management and compliance readiness, regardless of whether they choose to wait for governmental methods or seek immediate solutions.

Conclusion: Preparing for DAC7 Compliance with Confidence

The DAC7 grace period presents a valuable opportunity for small platforms to prepare without penalties. However, the responsibility of collecting and verifying seller data remains paramount. Supplied’s comprehensive tools facilitate seamless compliance from data preparation to submission, simplifying the process for small platforms navigating DAC7 compliance in the Netherlands.

Ready to ensure your platform and business is compliant? Contact us today for a free consultation or demo here. 

‍