Simplify DAC7 reporting

Streamlined DAC7 seller's data collection and reporting for gig work platforms, freelancer marketplaces, creator economy and streaming platforms via API integration. DAC7 compliant payment distribution to platform sellers and creators.

Are you a platform operator looking to submit a DAC7 report?

Abillio

DAC7 XML report generator

For professional / freelancer services only

Step 1: Download CSV template
CSV template
Download
Step 2: Upload the populated CSV file
Step 3: Fill in your company data (platform operator)

DAC7 Step By Step Guide

  • The Platform is obligated to ‘verify’ whether the information gathered about the sellers is correct. The Platform can do so by using ‘any information and documents available’. Therefore you can expect a check of internal documents and publicly available information to suffice. Abill.io API integrated DAC7 reporting as a service performs the seller data verification automatically.
  • The DAC7 rules apply to digital platform operators that facilitate the sale of goods or services, the rental of immovable property, or the rental of any mode of transport. This initiative impacts platforms of all sizes inside and outside of the EU. - The rental of immovable property, including residential and commercial property and parking spaces (e.g., Airbnb, Booking.com) - The rental of any mode of transport (e.g., Turo, Click&Boat) - Time or task-based personal services carried out at the request of a user (e.g., Uber, Upwork, Fiverr) - The sales of goods (e.g., through e-commerce platforms like eBay, Amazon) Abill.io only supports payments and DAC7 reporting for freelance services and creator services/digital products. Transactions need to have a monetary value to be considered reportable and be paid to the seller in a way that is verifiable by the digital platform. Sellers of goods with less than 30 transactions and for less than EUR 2,000 (in total per year) are excluded from the platform’s reporting obligations. Digital platforms include software applications (for mobile or desktop), websites, or parts of a website that connect sellers to buyers and allow them to carry out sales transactions (DAC7 calls these “Relevant Activities”). Excluded: Websites that only list services or goods, that do not take part in transactions and payment distribution. Payment service providers like Stripe, Wise, Paypal, Ayden, etc.
  • visit Resources (top menu) to view the full list in our article "All you need to know about DAC7 reporting"
  • DAC7, short for the 7th version of the European Council Directive on Administrative Cooperation and Automatic Exchange of Information in the Field of Taxation, is part of an initiative to improve tax cooperation between European Union countries, essentially affecting online platforms and their sellers (gig economy, freelance economy, sales of used goods). Under the new rule, online platforms (marketplaces) need to collect and verify the identification information of EU sellers who use their services and report information each year to their local tax authority. The local tax authority will then make the information available to all tax authorities across EU member states, creating transparency on taxpayer activities in all EU member states.
  • Abill.io provides a free XML report file generator with a few limitations: - reports only from platforms that facilitate freelancer or contractor services, creator content, digital products, streaming, online tutorials, etc. - our reporting tool does not support sales of physical goods - one reportable CSV file can not exceed 2000 data entries - if you're interested to generate a larger report, please contact [email protected] - report generation is free as long as you agree to receive marketing and sales information from abill.io about DAC7 related services
  • One common concern is the interaction between DAC7 and the recently introduced data protection regulations in Europe. While DAC7 requires platform operators to collect, validate and report data, the General Data Protection Regulation (GDPR) will require them to do so while not infringing the reportable sellers' right to the protection of their data. What is clear is that GDPR does not prevent or excuse platform operators from collecting the required data from reportable sellers. To stay GDPR compliant, platform operators will need to, amongst other things, inform individual reportable sellers that their information will be collected and reported to the competent authorities. abill.io API integrated DAC7 reporting and payment distribution services are GDPR compliant.
  • In case of non-compliance tax authorities can impose significant penalties on Platform Operators. Penalties differ in every country, ranging from a few thousand euros per incorrect seller record to EUR 900,000 in the Netherlands in case a Platform Operator intentionally avoids its reporting obligations. On top of financial penalties, in serious cases, the EU can decide to block access to non-compliant Platforms completely.
  • Yes, in this case you can avoid registering your platform with EU tax authorities, and let abill.io do the reporting on your behalf. If you're interested to use this service please reach out to us [email protected]
  • Platform Operators in the scope of DAC7 can fulfill their reporting obligations for the entire EU by submitting all of their EU data in one member state. Platform Operators that have at least one registered entity (or permanent establishment) in one of the EU member states must perform their data submission to the respective country’s tax authority. Platform operators with multiple entities across EU member states can choose any of these countries for submission. Platform operators with no registered presence (nor permanent establishments) in an EU member state can choose any EU country to perform their data submission. Data submissions to tax authorities will need to be performed by way of a direct connection through the internet, e.g. through a tax authority API, SOAP or similar electronic method. Platform Operators can build out the direct tax authority connection internally, or they can also engage external providers to handle the electronic data submission on their behalf.
  • Platform operators need to collect and report details on the following: - The seller’s personal information (name, date of birth, primary address) - Their tax identification number (TIN and/or VAT number) - Business registration number - Transaction amounts - Financial accounts used - Fees and taxes withheld by the platform operator - The rental property’s address & rental periods (for each property) Platforms need to report information by January 31, following the calendar year in which the reportable seller has used their services for selling goods or services, with the first reporting period being the year 2023. - Ireland extended till 7 February 2024. - Italy extended till 15 February 2024. - Spain’s deadline hasn’t been announced yet. - Poland could potentially postpone their DAC7 reporting deadline to the end of the year. For pre-existing sellers, platforms have until 31 December 2024 to complete due diligence procedures and validate sellers’ personal and tax identification information and collect any missing information.
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