Digital Administrative Cooperation in Taxation (DAC7)

Discover how the Digital Administrative Cooperation in Taxation (DAC7) regulation works within the European Union (EU), and the implications it has on your business. 

This guide covers:

Getting started

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.

DAC7 requirements

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.

NOTE: DAC7 is based on the EU Directive and also draws on guidelines from the Organization for Economic Cooperation and Development (OECD). This directive must be adopted by EU countries by the end of 2022, with the first reporting due in 2023.

Adhering to DAC7

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.

NOTE: DAC7 applies to digital platform operators inside and outside the EU, emphasizing the global impact of this EU regulation.


Q. What should I do if the information on my DAC7 form is incorrect?
If the information on your DAC7 form is incorrect, you can update this under your Fresha Billing details and your account holder information. Open your Wallet, select Bank accounts, and Edit next to the right entity to make the needed changes. Any updates should be completed before January of every year for the form to reflect the correct details and to guarantee it is mailed to the correct address.

Was this article helpful?

Can’t find your answer?

Get in touch and we’ll get back to you as soon as we can.

Contact us