DAC 7 – Reporting Obligations for Digital Platform Operators

DAC 7 (Directive 2021/514/EU) is the seventh amendment to the EU Administrative Cooperation Directive and targets the taxation of income earned through digital platforms. It is aligned with the OECD Model Rules for Reporting by Platform Operators (MRDP) of 2020.

• Platform operators (e.g. Airbnb, eBay, Uber) must collect income data from sellers active on their platform and report it to the competent tax authorities.
• Covered activities: Rental of real estate and means of transport, personal services and the sale of goods.
• Automatic exchange: Reported data is automatically exchanged between the relevant EU member states.
• Third-country equivalence: Platform operators from third countries with equivalent reporting regimes may make a single report.

The background to DAC 7 lies in the rapid growth of the platform economy and the resulting tax gaps, as many platform sellers fail to declare their income fully or at all. The OECD published model rules (MRDP) in July 2020, which the European Commission used as the basis for its directive proposal of July 2020. Directive 2021/514/EU was adopted on 22 March 2021.

Member states were required to transpose the directive into national law by 31 December 2022. The first reporting period covered calendar year 2023, with data due by 31 January 2024 and first automatic data exchange by 28 February 2024.

The background to DAC 7 lies in the rapid growth of the platform economy and the resulting tax gaps, as many platform sellers fail to declare their income fully or at all. The OECD published model rules (MRDP) in July 2020, which the European Commission used as the basis for its directive proposal of July 2020. Directive 2021/514/EU was adopted on 22 March 2021.

Member states were required to transpose the directive into national law by 31 December 2022. The first reporting period covered calendar year 2023, with data due by 31 January 2024 and first automatic data exchange by 28 February 2024.

In December 2025, the European Commission launched a public consultation on a DAC Recast, which aims to consolidate all previous DAC amending directives (DAC1–DAC8) into a single instrument. A formal legislative proposal is expected in Q2 2026.

DAC 7 applies to operators of digital platforms that enable users to sell goods, provide services or rent property (real estate, vehicles). Platforms established in an EU member state are directly obligated; third-country platforms may be subject to a registration requirement in the EU. Exempted are platforms that exclusively connect large commercial sellers (with more than 2,000 transactions and turnover exceeding EUR 100,000).

DAC 7 applies to operators of digital platforms that enable users to sell goods, provide services or rent property (real estate, vehicles). Platforms established in an EU member state are directly obligated; third-country platforms may be subject to a registration requirement in the EU. Exempted are platforms that exclusively connect casual sellers with fewer than 30 transactions AND turnover below EUR 2,000 (Annex V, Section I, B(4)).

• Due diligence obligations to identify and verify sellers, including tax identification number (TIN) and VAT number.
• Annual reporting of consideration per seller (broken down by quarter) by 31 January of the following year.
• Mandatory disclosures: name, address, TIN, date of birth, platform identifier, financial account data, amount of consideration, and real estate details where applicable.
• Retention of collected data for at least 10 years.
• Notification of sellers regarding the data reported about them.

• Due diligence obligations to identify and verify sellers, including tax identification number (TIN) and VAT number.
• Annual reporting of consideration per seller (broken down by quarter) by 31 January of the following year.
• Mandatory disclosures: name, address, TIN, date of birth, platform identifier, financial account data, amount of consideration, and real estate details where applicable.
• Retention of collected data for not less than 5 years but not more than 10 years (depending on national implementation).
• Notification of sellers regarding the data reported about them.

2 corrections:
- Incorrect retention period: '10 years' instead of '5 to 10 years'
- Incorrect exemption thresholds in scope description
1 update:
- Missing successors: DAC8 and DAC9 not listed as successors
1 clarification.
1 note.