What is DAC7?
EU’s tax directive, DAC7, requires digital platform operators in the EU to report revenue, personal, and business information about their providers to tax authorities once a year.
The DAC7 directive affects marketplaces that operate in the EU. This includes both marketplaces that are based in the EU and any marketplace that has sellers in the EU.
What information is required by Icephorm for DAC7?
Marketplace operators, such as Icephorm, need to report the following information to tax authorities under DAC7:
- The seller’s identity information: full name, primary address, and date of birth.
- EU member state of residence.
- Financial account identifier: i.e., a bank account number or account identifier.
- Tax identification number (TIN).
- VAT or business registration numbers if applicable (sellers who are private individuals will not have one).
- Consideration paid or credited per year. Consideration means the full amount of payments to a seller for the goods or services they’ve provided through the platform.
- Any fees, commissions, or taxes that the marketplace has withheld.