Policy Briefing — EU DAC7 Digital Platform Reporting Directive

Executive briefing: On March 22, 2021, the Council of the European Union adopted Directive (EU) 2021/514 (DAC7), amending the Directive on Administrative Cooperation to extend automatic tax information exchange to digital platform operators. In-scope platforms must register, due diligence sellers, and file annual reports covering consideration earned from 2023 onward.

Immediate compliance priorities

Platform scoping. Determine whether marketplace, gig, or accommodation services meet the definition of "platform operator" and assess permanent establishment obligations.
Due diligence procedures. Implement onboarding checks to validate sellers’ tax identification numbers, residency, and business classifications before payout.
Reporting design. Build data models to capture seller revenues, fees, and property details for submission to the competent authority by January 31 each year.

Control alignment

Governance. Assign responsible officers to oversee DAC7 compliance, including arrangements for appointing EU representatives for non-EU platforms.
Record retention. Maintain documentation supporting due diligence decisions and corrections for at least five years as required by Article 8ac.
Cross-border coordination. Harmonise DAC7 reporting with OECD Model Reporting Rules for digital platforms to streamline global tax transparency obligations.

Enablement moves

Engage tax advisors to interpret local transposition nuances and penalties across Member States.
Integrate seller support workflows that notify users of data discrepancies and pending suspensions tied to DAC7 requirements.
Test XML schema submissions early with tax authority sandboxes where available.

Sources

Zeph Tech supports platform operators with DAC7 due diligence checklists, XML reporting templates, and cross-border tax advisory coordination.