Since 2023, the EU has implemented DAC7, a European directive for platform operators (better known as marketplaces) to provide more transparency to the Tax Authorities about who is selling what via a marketplace. Complying with this can be quite challenging, especially if you don't know how to store your data correctly.
Reporting on DAC7
Information on obligations for Belgium can be found at this page. Actually, it embraces all marketplaces operating within the EU. A marketplace is an app or website that sells stuff from third parties (and sometimes itself). Examples of marketplace companies include Bol, Kruidvat and VidaXL.
What do I need to report?
There are several pieces of information you need to share with the Tax Authorities:
- Identifying data of the seller and activities
- Number of transactions/sales carried out
- Revenue
- For real estate: property details
Additionally, you must inform the sellers that you share this data with the Tax Authorities. This can be done by sending sellers an email with an amendment to the existing agreement or terms and conditions. You must explicitly state which data you are sharing.
Data and reporting
Chances are high that as a marketplace, you already have this data since it's internal. However, due to reporting obligations, it's crucial to have this data well-structured in your system. Structuring and mapping data is also known as Master Data Management. To report effectively on DAC7, you must ensure that sellers are not duplicated or listed under different names in your system. A data cleanse can be an effective solution for this. This prevents you from reporting unnecessarily or accidentally reporting incorrect information.
Interesting read: Automate data management with dataxess
Tools
With an MDM tool like dataxess, you not only get automatic data cleansing but also additional information about your seller in the system. If, for example, the seller is part of a family structure, you'll see that structure as well. If the seller moves to another office, that information is automatically updated. You can also see if your sellers pay invoices on time, and there are about 250 data points available for information retrieval.
In conclusion, the DAC7 legislation doesn't necessarily entail significant changes for your business operations. However, it's crucial to examine your current data. Verify if the data is still up-to-date and critically evaluate how you structure this data in your current system. Perhaps your system needs some cleaning up.
