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DAC 7: Information for sellers

DAC7 imposes an obligation on “Reporting Platform Operators” to submit to the tax authorities of the Member State in which they are registered certain information about sellers operating on their platforms.

The tax authority that receives this information will then share it with the tax authorities of the Member State of residence of the seller and, where applicable, of the State in which the property is located through an information exchange system.

Thus, the objective of DAC7 is not to collect a new tax, but rather it merely imposes an obligation to provide information in two ways:

  • On the one hand, the platform operators will be obliged to comply with due diligence rules and procedures, having to obtain, verify and determine the information relating to the “sellers”. These operators must then provide the tax authorities with the information obtained on “sellers subject to reporting information”.

  • On the other hand, the sellers themselves must provide the required information to the platform operators, to enable them to comply with their due diligence obligations.

As a result of this information statement, the tax authorities receive detailed information from the platforms. However, there are no changes to existing tax obligations for sellers.

Platform operators will be required to report on sellers who, during the year, have carried out any of the following activities in exchange for consideration:

  1. The sale of goods.

  2. The provision of personal services.

  3. The leasing or temporary transfer of use of real estate, both residential and commercial, as well as parking spaces.

  4. The leasing of any means of transport.

Sellers must provide the platform operator with the following information:

If the seller is a natural person :

  • Name and surname.

  • Main address.

  • Tax Identification Number, indicating the European Union Member State or jurisdiction of issue, or, in its absence, your place of birth.

  • Identification number for the purposes of Value Added Tax or similar, where applicable.

  • Birthdate.

If the seller is an entity :

  • Company name.

  • Main address.

  • Tax Identification Number, indicating the European Union Member State or jurisdiction of issue.

  • Identification number for the purposes of Value Added Tax or similar, where applicable.

  • Company registration number, if applicable.

  • Identification of permanent establishments from which the above-mentioned activities are carried out in the European Union, indicating the Member State in which they are located.

In the event that the activity carried out by the seller consists of the leasing or temporary transfer of real estate , the information obligations are broader, and include:

  • The address of each property.

  • The cadastral reference number of the property or the equivalent established in other jurisdictions.

  • Documents, data or information that prove that the real estate being marketed belongs to the same owner in the case of an excluded seller.

The information to be provided for each seller who has carried out any of the above-mentioned activities will be:

  • The data indicated in the previous section.

  • The financial account identifier.

  • The holder of the financial account into which the consideration is paid or credited, if different from the seller and available to the platform operator, as well as any other financial identification information held by the operator regarding this holder.

  • Each Member State or Partner Jurisdiction in which the seller is resident.

  • The total consideration paid or credited and the number of activities per quarter.

  • Commissions, bonds, fees, taxes and similar amounts withheld or collected by the platform operator during each quarter.

In addition, if the relevant activity carried out by the reportable seller involves the leasing of real estate , the following information shall be included:

  • Address and cadastral reference number or equivalent, if known.

  • Number of days each property has been rented during the period and type of property, if known.

No, there are certain sellers for which platform operators are not required to obtain, collect and report information. These are referred to as “ excluded sellers ”, and are sellers who meet any of the following conditions:

  1. that they are a state entity;

  2. that they are an entity whose share capital is regularly traded on a recognised stock exchange or an entity linked to an entity whose share capital is regularly traded on a recognised stock exchange;

  3. that they are an entity to which the platform operator has facilitated, in the reference period, more than 2,000 relevant activities through leases or temporary transfers of use with respect to a marketed real estate, or

  4. to which the platform operator has facilitated, by means of the sale of goods, less than thirty relevant activities, for which the total amount of consideration paid or credited has not exceeded EUR 2 000 during the reference period.

Platform operators will determine whether these sellers are indeed “excluded sellers” based on publicly available information or their own records.

Every platform operator must inform each reportable natural person seller that the information will be provided to the tax authorities and transferred to the relevant State in accordance with the Directive and the relevant international agreements.

Likewise, the operator will provide the natural person with sufficient advance notice of all the information that he or she is entitled to receive so that he or she can exercise his or her right to the protection of his or her personal data and, in any case, before the information collected by him or her is supplied to the tax authorities.