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DAC7: European tax law for online platforms

What is the European DAC7 tax legislation?

DAC7 is new European legislation that will come into effect on 1 January 2023 and aims to create more fiscal transparency in the digital economy. The aim is to combat tax fraud, avoidance and evasion. Online platforms (such as Bookarivertrip.com ) will be required from 1 January 2023 to collect tax-related data from sellers (landlords / hosts), operating from or in EU countries, and share this data with the national Tax Authorities in January 2024. The Dutch Tax Authorities in our case, will then share this data with the Tax Authorities of the other 26 Member States.


The data that platforms must share with the Tax Authorities are:


The following information from the landlord (as a natural person) ( source ):

  • First and last name
  • Main address
  • All TINs ( Tax Identification Numbers ) assigned to the lessor and the Member States where they were issued
  • VAT identification number, if available
  • Date of birth


Additional information when the landlord rents for business purposes (such as a sole proprietorship or BV) ( source ):

  • Official name
  • Main address
  • All TINs ( Tax Identification Numbers ) assigned to the lessor and the Member States where they were issued
  • VAT identification number
  • Company registration number (Chamber of Commerce number)


Financial information of the landlord ( source ):

  • Identification code (for example the account number) of the financial account to which the rent is paid or credited
  • If the account number is not in the name of the landlord:
    • The name of the holder of the financial account to which the rent is paid or credited
    • Main address
    • All TINs ( Tax Identification Numbers ) assigned to the account holder and the Member States where they were issued
    • VAT identification number, if available
    • Date of birth, or the Chamber of Commerce number if it concerns an entity
  • The total consideration (rent) paid or credited during each quarter of the reporting period
  • The number of relevant activities (bookings) for which this consideration has been paid or credited
  • All fees, commissions or taxes withheld or levied by Booka Rentals BV during each quarter of the reporting period


If the landlord to be reported rents out real estate, the following data will also be shared ( source ):

  • The postal address of each rented accommodation
  • The municipal or national registration number
  • The total rent paid or credited during each quarter of the reporting period
  • The number of relevant activities (bookings) performed for each property
  • The number of rental days for each property during the reporting period
  • The type of accommodation


When should Booka Rentals share this data?

A landlord's data must be shared if:

  • The rental of real estate, and;
  • If in total more than €2,000 has been paid out or credited to the lessor in the calendar year in question. This minimum does not apply to rentals, only to sellers.



You can already fill in the required information here:

Enter data


If you do not fill in the details in time, payouts will be frozen from the moment a payout exceeds the €2,000 limit in the relevant calendar year.


Future legislation

This DAC7 tax legislation is separate from the future measures to: "promote transparency in the short-term rental sector for the benefit of all players". This legislation, coming in a few years, specifically stipulates that rental data must be shared with local governments to give them insight into what is happening in their city in terms of tourist rentals. We only share the DAC7 tax information with the Tax Authorities.


Definitions

  • Main address : the address of the principal residence of a seller (lessor) who is a natural person, as well as the principal address of the registered office of a lessor if it is an entity.
  • Identification code : the unique identification number or reference number of the account at a bank or other similar payment service held by the platform operator and to which the consideration (rent) is paid or credited. For example, the IBAN or the PayPal email address.
  • Seller (landlord) : a user of a platform, whether a natural person or an entity, who is registered on the platform at any time during the reporting period and who carries out a relevant activity. For example: the rental of accommodation.
  • Entity : a legal person or legal arrangement, such as a corporation, partnership, trust or foundation.


Sources

  • DAC7 Legislation in: EN / NL / DE / ES / FR - Directive 2011/16/EU on administrative cooperation in the field of taxation
  • Dutch implementation progress of the European DAC7 directive: www.tweedekamer.nl.
    • As can be seen on this page, the vote on whether or not to pass this legislation was not until November 10, 2022, and passed with 123 of the 148 votes.
  • Future legislation (so not this DAC7 legislation): "on the collection and sharing of data relating to short-term rental of accommodation and amending Regulation (EU) 2018/1724"


If you have any questions, additions or anything else (un)related, please feel free to contact us.

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