What Is DAC7?
DAC7 — officially EU Council Directive 2021/514 — is the seventh amendment to the EU Directive on Administrative Cooperation in tax matters. It came into force on 1 January 2023 and requires digital platforms (marketplaces, rental sites, gig platforms) to collect and report data on their sellers to the local tax authority each year.
This is not a new tax. It is a reporting obligation for platforms, not for sellers. Platforms that fail to report face fines — up to €50,000 in France, up to €900,000 in the Netherlands. You, as a seller, are not fined under DAC7 directly.
What Triggers a Report?
A platform must report you to the tax authority if, in a calendar year on that platform, you:
- Made more than 30 transactions, OR
- Earned more than €2,000 in total income
These thresholds apply per platform per year. If you sell on both Vinted and eBay, each platform counts separately.
Note: Spain raised its threshold to €3,000 from 2026 onwards.
What Actually Happens?
Once a platform reports you, the tax authority in your country receives data about your income. This does not automatically mean you owe tax. In most EU countries, selling your own used personal belongings is not taxable. The question is whether your activity looks like a business (systematic reselling for profit).
If the tax authority has questions, they may send a letter asking you to explain your income. This is the real risk — not a DAC7 fine, but scrutiny under ordinary income tax or VAT rules.
What Should You Do?
- Know your numbers: How many transactions did you make? What was your total income per platform?
- Check your country's rules: Whether personal sales are taxable differs by country (and sometimes by the age of the item).
- Keep receipts: If you are reselling items you bought, proof of the original purchase price helps show you made no profit — or reduces the taxable gain.
- Use our calculator: Enter your numbers and get a free risk score in under 2 minutes.
DAC7 increases transparency — tax authorities now see what platforms already knew. If your activity looks like a business, now is the time to regularise it.