DAC7 (EU platform reporting)
DAC7 makes digital platforms report what their sellers earn to EU tax authorities, including platforms outside the EU with EU-resident sellers.
Definition
DAC7 is an EU directive on tax transparency for digital platforms. Since 1 January 2023, platform operators must collect and verify details about the sellers who earn money through them and report their income every year by 31 January.12
It applies outside the EU too
What counts is where the seller lives or where a rented property is. A platform based in the US, or anywhere else outside the EU, is in scope if it facilitates relevant activities for sellers who live in the EU, or rentals of property located in the EU.12
A non-EU platform operator registers in one EU member state of its choice and reports all its EU sellers there. That country shares the data with the other member states.12
Activities in scope
- Personal services: time- or task-based work done at the request of a user, online or offline12
- Sale of goods12
- Rental of real estate12
- Rental of any mode of transport12
What platforms collect
- Name, address and date of birth, or company details1
- Tax identification number and VAT number1
- Bank account used for payouts, where available1
- Income and fees per quarter1
Is your business a platform operator?
A platform connects sellers with users and helps the transaction happen.1 A creator marketplace where brands book creators for custom content can be in scope. Software that only processes payments is excluded, but an arrangement that collects and pays out the seller's income can form part of a platform.1 Standard content posted for a general audience may not count as a personal service, because it is not done at the request of a user.1 The line is not always clear, so check your model with a tax advisor.
Upcoming changes
In June 2026, the European Commission proposed a recast of the EU rules on administrative cooperation that would change some DAC7 details, such as a higher reporting threshold for sales of goods.3 Until it is adopted, the current rules apply.
How Talentir helps
DAC7 support is an opt-in you can activate. When it is on, Talentir collects the details DAC7 asks for, such as the tax ID and date of birth, from each EU payee before their first payout. See how Talentir handles compliance
Further reading
Related topics
VAT reverse charge
Under the reverse charge, the business customer accounts for VAT on a cross-border B2B service instead of the supplier.
Self-billing
Self-billing means the buyer creates the invoice on behalf of the supplier, so creators do not have to write an invoice themselves.
KYC and KYB
KYC (Know Your Customer) verifies a person's identity. KYB (Know Your Business) verifies a company, its owners and the people who act for it.
What is a Merchant of Record?
A Merchant of Record (MoR) is the legal entity that is the counterparty to a transaction and generally carries the tax, invoicing and compliance obligations for it.