Background: Why Was DAC7 Created?
The EU recognised that the rapid growth of the digital platform economy was creating a large tax gap. Platforms like Airbnb, Vinted, and eBay held detailed income data that tax authorities did not automatically receive. Some sellers were earning significant income without declaring it because no reporting mechanism existed.
DAC7 was designed to close this gap by requiring platforms to act as information conduits between sellers and tax authorities.
Core Legal Structure
Directive 2021/514 amends the 2011 Directive on Administrative Cooperation (DAC). It:
- Defines "Reporting Platform Operators" — any digital platform facilitating the sale of goods, rental of immovable property, provision of personal services, or rental of transport
- Establishes due diligence rules platforms must follow to collect seller data
- Sets the annual reporting deadline: 31 January of the year following the reporting period
- Requires automatic exchange of the collected information between EU member states
What Platforms Must Collect
For each reportable seller, platforms must collect and verify:
- Name, address, EU VAT number or national TIN
- Date of birth
- Financial account identifier (IBAN)
- Member state of residence
- Total consideration paid per quarter, number of transactions, and fees withheld
Member State Transposition
Each EU member state was required to transpose DAC7 into national law by 31 December 2022, with the reporting obligation effective from 1 January 2023. Examples:
| Country | National Law | |---|---| | Germany | Plattformen-Steuertransparenzgesetz (PStTG) | | France | Ordonnance n° 2021-1190 of 15 September 2021 | | Spain | Real Decreto-ley 13/2023 / Ley 13/2023 | | Italy | D.Lgs. n. 32 of 1 March 2023 | | Poland | Ustawa z 26 maja 2023 r. | | Netherlands | Wet implementatie DAC7 (Stb. 2022, 508) |
What the Directive Does NOT Do
- It does not create a new tax for sellers
- It does not set income tax rates or exemptions for marketplace income
- It does not require sellers to pay anything directly to the EU
- It does not impose fines on sellers (fines are on platforms for non-compliance)
The directive is a reporting framework. Whether a seller owes tax on their income is governed entirely by national income tax law — which varies considerably between member states.
What Has Changed Since 2023?
- First reports were filed in January 2024 (covering 2023)
- The European Commission proposed raising the reporting threshold from €2,000 to €3,000 (not yet adopted EU-wide as of mid-2026)
- Spain unilaterally raised its threshold to €3,000 from 2026
- The UK, though no longer in the EU, adopted equivalent HMRC rules effective from January 2024
Key Takeaway
DAC7 is a transparency tool. Your tax authority now sees your marketplace income. What happens next depends on your country's tax rules and your specific situation — which is exactly what our risk calculator helps you assess.