The European Union’s DAC7 Directive is a regulatory measure designed to increase tax transparency in the digital economy. At Reservio, we aim to ensure that our users comply with these requirements while providing a seamless platform experience.
The Digital Administrative Cooperation in Taxation (DAC7) regulations outlined in this article apply exclusively to Czech businesses listed on our marketplace, www.reservio.cz. If your business is part of our marketplace, these guidelines are essential to ensure compliance with EU tax reporting requirements. For businesses outside the Czech Republic or not listed on our marketplace, these regulations do not apply.
What is DAC7?
DAC7 is an amendment to the EU’s administrative cooperation directive, obliging digital platforms to report specific information about sellers who earn income through their services. This directive is part of the EU’s broader initiative to combat tax evasion and ensure fair competition in the digital economy.
Who is affected by DAC7?
Platform Operators: Companies like Reservio that provide digital services enabling transactions for users.
Sellers/Service Providers: Individuals or businesses who earn income through these platforms.
If you use Reservio to offer services and earn income, this directive applies to you.
What does DAC7 require?
Under DAC7, Reservio is required to:
Collect Information: Gather specific data from sellers/service providers, including:
Name
Address
Tax Identification Number (TIN)
Date of birth (for individuals)
VAT number (if applicable)
Gross income earned through the platform
Report Data: Share this information with the tax authorities in the relevant EU country where the seller is taxable.
When is the reporting done?
Reservio will report the required information annually. The reporting period covers the calendar year, with submissions typically due in January of the following year.
What information do I need to provide?
To ensure compliance with DAC7, Reservio users who meet the reporting thresholds will need to provide:
A valid Tax Identification Number (TIN)
Personal or business identification details
Any additional information requested for tax reporting purposes
If the current information is incorrect, you can update this under your Reservio settings. Navigate to the Sales tab, select Billing details, and edit the necessary fields. Ensure updates are completed before January of each year for the form to reflect the correct details and guarantee proper processing.
How does Reservio support compliance?
Secure Data Handling: We prioritize your privacy and ensure all reported data is securely processed and shared only with authorized tax authorities.
Notifications: Reservio will notify you if you need to provide additional information to meet DAC7 requirements.
What happens if I don’t provide the required information?
Failure to provide the necessary data may result in:
Restrictions on your Reservio account
Potential legal or tax penalties imposed by the authorities in your country
Frequently Asked Questions
1. Does DAC7 apply if I’m not in the EU?
Yes, DAC7 applies to platforms and sellers outside the EU if they have EU-based users or customers. If you offer services to clients in the EU, you may still be subject to reporting requirements.
2. What transactions are reported?
DAC7 focuses on transactions involving:
Service provision
Rental of property
Sale of goods
Investment income
3. Is Reservio responsible for calculating my taxes?
No, Reservio’s role is to report the required data to tax authorities. It remains your responsibility to determine and pay any taxes owed based on the income reported.
Need Assistance?
If you have any questions about DAC7 or how it impacts your Reservio account, please contact our support team. We’re here to help you navigate these requirements with ease.