Digital Administrative Cooperation in Taxation (DAC7)

DAC7 is an update to the EU's Directive on Administrative Cooperation (DAC), focusing on improving tax transparency and combating tax evasion by requiring digital platforms to report information on the sellers using their platforms. This information will be shared with tax authorities across the EU to ensure that online sellers are paying the appropriate taxes on their income.

The EU is working to ensure that all businesses, regardless of their location, size, or operation, are contributing their fair share to the tax system.

The DAC7 regulation was created to close loopholes by requiring all businesses, including digital platforms, to collect and submit detailed information on their sellers and transactions to the relevant tax authorities. This includes identifying the data of sellers and details of the transactions facilitated by the platform.

This requirement allows tax authorities to effectively track and regulate online transactions.

It's crucial for digital platform operators, including online marketplaces, app stores, and payment service providers, to understand and adhere to the compliance requirements of the DAC7 regulation.

Fresha operates in the EU from Ireland, therefore we provide all information to Irish tax authorities where it is then shared with its counterparts in the EU.