The tax directive DAC7 extends EU tax transparency rules to online marketplaces and requires reporting seller data to tax authorities. We shared lots of information on what DAC7 is about and how it affects online marketplaces in the article at https://www.sharetribe.com/academy/what-is-dac7/.
Am I affected by DAC7?
You should comply with the DAC7 regulation if your marketplace operates in the EU and is about:
Rental of immovable property, both residential and commercial
Rental of any mode of transport
Providing personal services
Sale of goods
Note that marketplaces that deal with rentals of moveable assets (apart from transport) and peer-to-peer lending are excluded from the directive.
What should I report to the tax office authorities?
Annually, you must report some information about sellers and their activity on your marketplace.
You don't have to report anything about "casual sellers": sellers who have, within a reportable period, fewer than 30 sales for which the total consideration does not exceed 2,000 euros.
For sellers in your marketplace that should be reported to your local tax office, you should provide:
The seller’s identity information: full name, primary address, and date of birth.
EU member state of residence.
Financial account identifier: i.e. a bank account number or account identifier.
Tax identification number.
VAT or business registration numbers (if applicable: sellers who are private individuals will not have one).
Consideration paid or credited per year. Consideration means the full amount of payments to a seller for the services or goods they’ve provided through the platform.
Any fees, commissions, or taxes that the marketplace has withheld.
The address of the immovable rental property (if applicable).
Where to get the information I have to report?
The information needed can be found in your Stripe dashboard (or any other payment gateway you're using for your Sharetribe marketplace). Stripe is responsible for the Know Your Customer data collection, and have all the information you need.
You can export most of the required data at https://dashboard.stripe.com/connect/accounts/overview, into a CSV file.
At the moment, Stripe does not offer a way to export all the information (for example, "Date of birth" is not available in the CSV export). To get the final bits of information, you can:
collect the information manually, from each account, in your Stripe dashboard
contact the Stripe support team and ask for an export
use the Stripe APIs to export this data
In addition, you can export your transaction history from Console, to reconciliate the monetary amounts for transactions that took place on your Sharetribe marketplace.
Where to report the information?
Each EU country has its own ways for you to report this. You can find more information on your local tax office website.