As of 1 January 2024, marketplaces are required under EU Law to report personal details of sellers and their yearly sales transactions to EU tax authorities in respect of the previous year, if their sales meet the reporting threshold. DAC7 is an EU directive that requires digital platform operators to report certain required information about the sellers that use their platforms
Sellers who make over €2000, or sell 30 or more items in a calendar year, and who reside in an EU member state, will be reportable under DAC7. Depop is required by law to collect and verify certain, additional information for these sellers, and report it to the relevant EU tax authorities.
We are required to file our DAC7 report in January 2025, reporting data from the calendar year 2024, and will include sellers already on the platform and new sellers in 2024.
What information do we need to collect from you?
For individuals, we will request:
- Your first and last name, and your date of birth
- Your primary residential address
- Your Tax Identification Number and country of issuance
- Your VAT ID, where applicable
For legal entities, we will request:
- Legal/shop name
- Primary business address
- Your Tax Identification Number and country of issuance
- Your VAT ID, where applicable
- Your business registration number
Depop is also required to share the following transactional information:
- Total amount paid to the seller during each quarter of the period. The total amount paid is your total gross sales, minus any fees and refunded transactions
- Total number of transactions that the total amount corresponds to during each quarter of the period
- Total amount of fees, commissions, or taxes withheld or charged on seller fees by Depop during each quarter of the period
How will you collect my information?
If you meet the criteria above, we will email you with a link to a form to fill in on your device to provide your information. You must answer the questions provided and then submit your form before the deadline, to avoid any further action taken on your account.
Please ensure your tax information is up to date and accurate for reporting. If you later realise that you need to update your information, you can respond to the original email, or get in touch with us. If you’re contacted in December, the deadline for response is 31 December 2024; if we reach out to you after this, your deadline will be adjusted.
To access the form, please ensure that you're on the latest version of the app.
How will I know what data you’ve reported?
A copy of your data will be provided to you once it’s been filed, so you’ll know exactly what was sent.
What are the consequences if I don’t provide my information?
If you don’t submit the information requested by the deadline we provide, your account will be deactivated until we receive and verify your data.
What if I cannot provide all of the information you’ve requested?
You must provide as much information as possible. By submitting the form, you verify that your responses are accurate and complete.
Does this mean I have to pay tax on my sales?
If you do meet this threshold, this doesn’t necessarily mean you need to pay tax. Only profits from trading secondhand items are potentially taxable, so if you’re using Depop to sell your own personal possessions then you likely won’t need to pay tax.
For example, say you purchased items of clothing for a total of €3,500 in 2023 and sold them for €2,500 in 2024. Depop would have to report the €2,500 less Depop fees to DAC-7, but you would have no taxable income to report since the resale amount is less than the original purchase price.
However, everyone’s situation is different, and it’s worth keeping records of your finances (i.e. receipts) just in case you need them at a later stage. If you have questions about your taxable income, it’s best to work with a tax professional or contact your local tax authority.