DAC7: What It Currently Requires
Under the existing DAC7 rules, operators of digital platforms must report information about their EU-resident sellers—this includes personal & financial info relating to sales, rentals, transport and personal services. Reporting deadlines are tight: the annual report is due by 31 January following the calendar year in which the activity took place. (taxation-customs.ec.europa.eu)
What the Recast Proposal Would Change for Sellers & Platforms
- Increased thresholds: The proposed DAC recast would raise the monetary threshold for online sales of goods—this means that many private, second-hand sellers could be exempted. Over 10 million sellers are expected to drop out of the reporting net. (taxation-customs.ec.europa.eu)
- Removal of low-value/few sales obligations: If you engage in cross-border platform-based sales that are small scale, you may no longer need to supply certain transaction data under DAC7 reforms.
Who Stays and Who Gets Relief
| Category | Likely Relief | Likely Still Covered |
|---|---|---|
| Private individual selling second-hand goods occasionally | Likely exempt under new thresholds | Not identified when exceeding thresholds or business-like activity |
| SMEs using platforms for commercial purpose | May still have simplified rules but still reportable | Sales that exceed monetary or volume limits |
| Non-Union platforms | Still need to meet registration & reporting via single Member State |
Preparing Now: Checklist
- Track your platform income: Even if currently under thresholds, maintain records of total earnings—important if ever exceeding new proposed limits.
- Verify platform’s registration status: Platforms must register in one EU Member State and report there. Ensure the platform(s) you use are in compliance.
- Update privacy & data systems: Platforms will need accurate personal identification & TIN systems for reporting. Individuals may need to supply or confirm these details.
- Stay informed on legislative progress: These are proposals. Member States and Parliament may amend thresholds or criteria during negotiations.
Practical Example
Anna, an individual in Czechia, sells some vintage furniture via EU-wide digital platforms, earning £2,500/year total. Under current DAC7 she must report; under the recast, if threshold raised to €3,000 and simplified reporting rules apply, she may be exempted. Meanwhile, a micro-SME doing sales of €15,000/year likely still reports, but with reduced administrative burden.
Conclusion: If you’re a small platform seller, the DAC7 recast offers potential relief—but you still need clean records and an eye on thresholds to ensure you either benefit or avoid surprise obligations.