DAC7: What do I need to know?

Starting January 1, 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. The EU directive is referred to by EU tax authorities as DAC7.

 

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 first DAC7 report in January 2024, reporting data from the calendar year 2023, and will only include new sellers who signed up to Depop from 1st January 2023 in this report. Existing sellers on Depop prior to 2023 will be reported for the first time in 2025, for sales made 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
  • Your VAT ID, where applicable

 

For legal entities, we will request:

  • Legal/shop name
  • Primary address
  • Your Tax Identification Number
  • 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 provide your information. You must answer the questions provided and then submit your form before the deadline, to avoid any payouts being withheld 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. The deadline for any changes is the 31st of December 2023.

 

How will I know what data you’ve reported?

The first DAC7 report will be filed on January 31st 2024, and if you would like a copy of the data to be emailed to you afterwards, just respond to the original email and let us know.

 

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.

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