DAC7: European tax law for online platforms

What is the European DAC7 tax law?

DAC7 is new European legislation that will enter into force on 1 January 2023 and aims to create more tax transparency in the digital economy. The aim is to combat tax fraud, avoidance and evasion. Online platforms (such as Bookahouseboat.com ) will be obliged from January 1, 2023 to collect tax-related data from sellers (landlords / hosts) operating from or in EU countries and to share this with the national tax authorities in January 2024. In our case, the Dutch tax authorities then share this information with the tax authorities of the other 26 member states.


The data that platforms must share with the Tax and Customs Administration are:


The following info from the landlord (as a natural person) ( source ):

  • First and last name
  • Main address
  • All TINs ( Tax Identification Numbers ) assigned to the landlord, and the member states where they were issued
  • VAT identification number, if available
  • Date of birth


Additional info when the landlord rents out for business (such as sole proprietorship or BV) ( source ):

  • Official name
  • Main address
  • All TINs ( Tax Identification Numbers ) assigned to the landlord, and the member states where they were issued
  • VAT identification number
  • Company registration number (Chamber of Commerce number)


Financial information from the landlord ( source ):

  • Identification code (for example the account number) of the financial account to which the rent is paid or credited
  • If the account number is not in the name of the lessor:
    • The name of the holder of the financial account to which the rent is paid or credited
    • Main address
    • All TINs ( Tax Identification Numbers ) assigned to the account holder and the Member States where they were issued
    • VAT identification number, if available
    • Date of birth, or the Chamber of Commerce number if it concerns an entity
  • The total consideration (rent) paid or credited during each quarter of the reporting period
  • The number of relevant activities (bookings) for which this consideration has been paid or credited
  • All fees, commissions or taxes withheld or levied by Booka Rentals BV during each quarter of the reporting period


If the reportable lessor rents out real estate, the following data will also be shared ( source ):

  • The postal address of each rented accommodation
  • The municipal or national registration number
  • The total rent paid or credited during each quarter of the reporting period
  • The number of relevant activities (bookings) made for each accommodation
  • The number of rental days for each property during the reporting period
  • The type of accommodation


When should Booka Rentals share this information?

Data from a landlord must be shared if there is:


What do we report?

As a Platform, Booka Rentals falls under this new DAC7 tax legislation. We will therefore share the requested data for all bookings that take place in immovable accommodations, such as lighthouses or tree houses. However, this is currently different for movable property such as houseboats, (sailing) ships and glamping tents. According to current legislation and jurisprudence, houseboats are not immovable but movable property. It becomes even clearer in the English translation of this legislation, where they speak of: 'Immovable goods', a houseboat is indeed 'moveable'. In our opinion, houseboats, ships and tents, etc. do not fall under the reporting obligation, so we will not include them in our reports.

We note the following here. At the moment, we see no direct reason for the Tax and Customs Administration to take a different position, as a result of which movable property lessors will fall under the reporting obligation. However, this is not completely ruled out. In addition, it is possible that DAC7 legislation will be amended (with retroactive effect). Against this background, in consultation with a number of (tax) lawyers, it was decided to also request the necessary information from our movable property landlords when they exceed € 2,000 in rental income in a calendar year.

If there is reason to do so, this discussion will be held with the Tax and Customs Administration. Should this nevertheless lead to a reporting obligation, we will at least have the data available to meet our obligations. This also prevents a major administrative burden for landlords (hosts) and for us afterwards.


You can fill in the required information here:

Fill in data


If you do not enter the details in time, payouts will be frozen from the moment a payout exceeds the limit of €2,000 in the relevant calendar year.


Future legislation

This DAC7 tax legislation is separate from future measures to: "promote transparency in the short-term rental sector for the benefit of all players". This legislation, due in a few years, specifically stipulates that rental data must be shared with local governments to give them insight into what is happening in their city in terms of tourist rentals. We only share the DAC7 tax information with the tax authorities.


Definitions

  • Main Address : the address of the main residence of a seller (lessor) who is a natural person, as well as the main address of the registered office of a lessor if it is an entity.
  • Identification code : the unique identification number or reference number of the account with a bank or other comparable payment service held by the platform operator and to which the consideration (rental) is paid or credited. For example, the IBAN or the PayPal email address.
  • Seller (Lessor) : a user of a platform, either a natural person or an entity, who is registered on the platform at any time during the reporting period and performs a relevant activity. For example: the rental of an accommodation.
  • Entity : a legal entity or legal arrangement, such as a corporation, partnership, trust or foundation.


Sources

  • DAC7 Legislation in: EN / NL / DE / ES / FR - Directive 2011/16/EU on administrative cooperation in the field of taxation
  • Dutch implementation progress of the European DAC7 directive: www.tweedekamer.nl.
    • As can be seen on this page, the vote on whether or not to pass this legislation was only held on November 10, 2022 and passed with 123 votes out of 148.
  • Future legislation (not this DAC7 legislation): "on the collection and sharing of data related to short-term rental of accommodation and amending Regulation (EU) 2018/1724"


If there are any questions, you have additions or anything else (un)related, please feel free to contact us.

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