DAC7 information collection and reporting requirements
As a result of the new Directive on Administrative Cooperation (DAC7), Petspace is required to collect and report information about EU-established brands to the Dutch tax authorities (DTA).
Below you’ll find everything you need to know about DAC7.
What is DAC7?
DAC7 is a new law which, from 1 January 2023, requires digital platform companies to collect and annually report information relating to sellers (brands) operating on their digital platforms to the tax authority of the EU Member State where the digital platform company is based. Subsequently, that EU Member State is required to automatically exchange this information with the tax authority of the EU Member State in which the brand is a resident.
Due to this new legal requirement, we are required to report information about our EU-established brands, both business entities and individuals, to the DTA. The DTA will then share this information with the tax authorities in the other EU member states.
The aim of DAC7 is to improve how information is shared between EU member states, and to increase transparency of revenue earned by brands through digital platforms. Ultimately, this law should simplify the collection of taxes by local tax authorities.
By providing us with accurate information on a timely basis, you will be helping to ensure that your own local tax authorities have all the information which they need in order to ensure efficient tax administration.
Who does DAC7 apply to?
If you are an EU based brand who joined Petspace in 2023, you are impacted by DAC7 requirements, unless you meet the definition of an excluded seller (Having had fewer than 30 Petspace orders during the year and received less than €2,000 for those orders would qualify you as an excluded seller.)
Who does DAC7 not apply to?
For the sale of goods, DAC7 does not apply to you if you are based outside the European Union. DAC7 also does not apply to your brand if you are a governmental entity, listed company or an affiliated (>50% interest) entity of a listed company.
In addition, Petspace does not have DAC7 reporting requirements for your brand if you have had fewer than 30 Petspace orders during the year and received less than €2,000 for those orders.
This would qualify you as an excluded seller.
Please note, If you have multiple brand accounts, we will consolidate the orders placed via each account in order to determine whether this threshold has been met.
See table below for examples :
Year Number of orders fulfilled Total payout Excluded Seller?
2023 35 €1,000 No
2024 35 €2,500 No
2025 15 €1,500 Yes
As you will note from the above, this example brand is only an excluded seller in 2025, as this is the only year when both conditions for exclusion were met. This means that for 2023 and 2024, DAC7 requirements apply to this brand.
When did DAC7 reporting requirements start?
DAC7 reporting requirements became effective from 1 January 2023, and taxpayer information is required to be reported by digital platforms each January following the previous year.
As such, if you joined Petspace in 2023 and are not an “excluded seller”, Petspace is required to collect and report all required information to the DTA by 31 January 2024. This reporting cycle will then continue on an annual basis.
If you joined Petspace prior to 2023, you will be subject to DAC7 reporting requirements for transactions taking place on the platform in 2024 and subsequent years, if the reporting thresholds are met.
What information is required to be shared with the EU tax authorities?
Petspace is required to share the following information with the DTA. Please note that the exact information we are required to collect and share varies slightly, depending on whether you are a natural person, or a legal entity;
Natural person/individual
First and last name
Primary address
Date of birth
Tax identification number (TIN)
VAT registration number
Legal person or legal arrangement (corporation, partnership, trust, foundation)
Legal name
Primary address
Tax Identification Number (TIN)
VAT registration number
Business registration number
The existence of a “permanent establishment” –
Ex: If you are selling goods in a Member State other than the one where you are incorporated, and if you are registered for income tax there, then you should report this to us as part of this requirement.
In addition to the information listed above, Petspace is also required to share transaction related information with the DTA, including:
Bank account details
Total number of sales made per quarter
Total value of payouts paid to your brand per quarter
Total amount of fees/commissions/taxes withheld by Petspace per quarter
We won’t be requesting this information from you, as we already have access to it on your Petspace account.
How do I provide my information?
In advance of the first reporting deadline of 1 January 2024, we ask you to provide certain additional information, which has not already been captured as part of the standard onboarding and KYC procedures you completed when joining Petspace. We will send you a secure link to a form via email.
To ensure the efficient sharing of information to your local tax authorities and minimize risk for errors, please take the time to respond to our emails as soon as possible.
If I don’t provide my taxpayer information, will Petspace still share my information?
Yes. We will share all relevant information, to the extent required by DAC7. If you fail to respond to our emails and provide us with the required information, we may need to take enforcement measures of freezing your payouts and/or blocking your ability to accept new orders on Petspace.
If I’ve made an error in adding my taxpayer information, can the information be changed?
If you have made an error when filling in the secure form we sent you, please reach out to [email protected] to request that your information be changed.
Will Petspace share what information was provided to the DTA?
Yes. Petspace will make a copy of the information related to your brand, which was shared with the DTA, available to you.
Can my tax authority review income tax returns for past years?
The rules applying to the review of prior tax returns vary by EU country. Consult with your local tax advisor for further information.
If I deactivate my Petspace account now, will my information be shared?
Yes. If your brand fell under DAC7 requirements for 2023 then Petspace will share all relevant information, to the extent required by DAC7. We are still legally required to share your information with the DTA, regardless of the status of your Petspace account.
Why are you collecting my information?
DAC7 places a legal obligation on Petspace as a digital platform to share the information of EU-established brands. We are collecting your information in order to allow us to comply with our legal obligations under DAC7. For more information about how we process your information, please see our Privacy Policy.
Who will Petspace share my information with?
Petspace will share your information with the DTA for DAC7 compliance purposes. The DTA will then share this information with the tax authorities in the EU Member State(s) where you are tax resident.
If you have any questions on the information requests, please reach out to [email protected]