DAC7 & Digital Platform Reporting Software

DAC7 (Council Directive (EU) 2021/514) was adopted on 22 March 2021 as the 7th amendment to the EU Directive on Administrative Cooperation. It requires digital platform operators to collect, verify, and report seller data to tax authorities across 27 EU member states. It targets four categories of activity: sale of goods, provision of personal services, rental of immovable property, and rental of transport.

Any digital platform operator that facilitates one or more of the four reportable activity types for third-party sellers within the EU. This includes e-commerce marketplaces, gig and freelance platforms, short-term rental platforms, ride-sharing operators, food delivery services, B2B and SaaS marketplaces, and financial institutions with platform operations. Both EU-based and non-EU platforms with EU sellers are in scope.

Four categories: (1) sale of goods, (2) provision of personal services, (3) rental of immovable property, and (4) rental of any mode of transport. Platforms must report the number of relevant activities, total consideration paid, and any fees or commissions withheld. Each activity type must be reported separately per seller. A single seller active across multiple categories generates multiple reporting records.

DAC7 targets digital platform operators (marketplaces, gig economy, rental platforms). DAC8 targets financial institutions and crypto-asset service providers. Different reporting entities, different data requirements, different XML schemas. Both are part of the EU's Directive on Administrative Cooperation framework. Different obligated entities, different due diligence procedures — but both require real-time TIN validation and audit-ready records.

Penalties are set by each member state under national implementation, and DAC7 requires them to be effective, proportionate and dissuasive. In the Netherlands, the administrative fine is up to €1,100,000 for intent or gross negligence (art. 11(3) WIB, the sixth fine category of art. 23(4) Dutch Criminal Code, from 1 January 2026). In Germany (PStTG § 25(2)), it is up to €50,000 for registration and notification breaches, up to €30,000 for reporting breaches and up to €5,000 for other breaches. In France (CGI art. 1736 XI), it is up to €50,000. Other member states set their own amounts. Penalties apply per member state, so a platform operating in multiple EU states faces cumulative exposure. Each incomplete seller record, unverified TIN, or missed reporting obligation can be a separate violation.

For individuals: full legal name, primary address, country of tax residence, TIN and issuing country, date of birth, and payout/settlement details. For entities: business name, registered address, TIN, business registration number, VAT ID where applicable, and payout details. Verification must use official or reliable independent sources — not seller-declared information alone.

There is no single official EU DAC7 form. The term is used for three different things. First, the seller information form: the questionnaire a platform asks each seller to complete, covering name, address, TIN, VAT number and date of birth for individuals, or legal name, registration number and TIN for entities. Each platform designs its own, so layouts differ. Second, the seller's copy: the platform must also give each reportable seller the information it reports about them, no later than 31 January of the year after the calendar year in which the seller was identified as reportable. Third, the platform's report to the tax authority, due by the same 31 January and filed electronically, normally as an XML file, not on paper. The Directive sets what must be collected and reported, not a template.

No. Paper forms and static CSV uploads cannot support real-time TIN verification, cannot trigger automated discrepancy resolution, and cannot produce structured audit trails. With millions of sellers and annual reporting deadlines, manual processes create compounding remediation costs and regulatory exposure that scale with your seller base.

Yes. API-first architecture with REST endpoints, webhooks for real-time seller status updates, and SFTP for bulk operations. The OS embeds into your existing seller onboarding flow — no redirect, no separate portal. White-label ready with your platform branding throughout. Deployed in weeks.