DAC7: which marketplace sellers are reported, and what you are asked for
A marketplace wants your tax ID, date of birth and bank details for DAC7, and you are not sure the rule even reaches you.
DAC7 makes marketplaces report sellers who live in the EU: 30 or more sales, or more than EUR 2,000, in a year. Based outside the EU, with no EU tax number, you are not reported, but the marketplace may still ask for your details.
DAC7, Directive (EU) 2021/514, makes online platforms collect details from their sellers and report, once a year, the sellers resident in an EU country. A seller of goods is left out only while its platform operator handles fewer than 30 of its sales and pays it no more than EUR 2,000 in the calendar year: "less than 30 Relevant Activities by means of the sale of Goods and for which the total amount of Consideration paid or credited did not exceed EUR 2 000" (Annex V, Section I, B(4)(d), of Directive 2011/16/EU). The exception is a government body, or a listed company or a member of its group, which is left out whatever it sells (B(4)(a)-(b)). Residence follows your primary address, any tax number an EU country issued you, and, for a company, any permanent establishment you declare in the EU. A seller of goods with all three outside the EU is not a reportable seller. The platform still collects, from every seller over the line, your name, your address and any tax number an EU country issued you. An individual also gives a date of birth, and a place of birth if it has no such number. A request for your own country's tax number comes from the marketplace's own rules and other reporting laws, not from DAC7's list. Leave the request unanswered and the platform must close your account or hold your payouts, after two reminders and no sooner than 60 days. DAC7 adds no tax of its own.
DAC7 is the short name for Council Directive (EU) 2021/514Directive (EU) 2021/514, DAC7 (platform seller reporting)The whole regulationClick opens the law on the EU Publications Office.. It added the platform rules, as Annex V, to the EU’s directive on tax cooperation (Art. 1(20)Directive (EU) 2021/514, DAC7 (platform seller reporting)Article 1, paragraph 20Click opens the article on EUR-Lex.), and EU countries apply them from 1 January 2023 (Art. 2(1)Directive (EU) 2021/514, DAC7 (platform seller reporting)Article 2, paragraph 1Click opens the article on EUR-Lex.). The duty sits on the marketplace, not on you. Your part is to answer its questions.
What you do:
- Find where you are resident for DAC7. Three things decide it: your primary address (your home if you sell as a person, your registered office if you sell as a company), any tax number an EU country issued you, and, if you sell as a company, any permanent establishment you tell the marketplace you have in the EU (Annex V, Section II, B(2)(f) and D(1)).
- All three outside the EU: DAC7 does not report you to an EU tax authority. The rule reaches sellers “resident in a Member State”, and, outside goods, sellers renting out property in one (Annex V, Section I, B(3)).
- Answer the marketplace anyway, before its deadline. It must collect your details to decide where you are resident, and other laws ask for some of the same. On Etsy, a seller outside the US and India picks its country and tax ID form in the Additional taxpayer identification field on the Legal and tax information page (Etsy Help).
- Resident in the EU: give your tax identification number (TIN). The marketplace reports you once you reach 30 sales on it in a calendar year, or are paid more than EUR 2,000 on it after its fees (Annex V, Section I, B(4)(d)).
- Read the copy the marketplace sends you by 31 January, and declare that income under your own country’s tax rules (Annex V, Section III, A(5)). DAC7 adds no tax of its own.
- Based in the UK: the UK’s own rules apply since 1 January 2024, with the same line of 30 sales or EUR 2,000. A UK marketplace reports you to HMRC (GOV.UK). With a tax number an EU country issued you, DAC7 also treats you as resident in that country (Annex V, Section II, D(1)).
| Your case | Reported under DAC7? | What the marketplace asks |
|---|---|---|
| You live in an EU country, or your company’s registered office is in one; 30 or more sales, or more than EUR 2,000, on one marketplace in the year | Yes, once a year, to the EU country where the marketplace reports, which passes it to yours | Name, address, TIN, VAT number if you have one, date of birth (a person) or business registration number (a company) |
| The same, under 30 sales and EUR 2,000 or less on that marketplace | No | Nothing under DAC7 |
| Address outside the EU, no tax number from an EU country, no permanent establishment in the EU | No | Your details all the same, to settle your residence; as a person, your place of birth. Your own country’s tax number only under the marketplace’s own rules or other laws, not DAC7 |
| Address outside the EU, the UK included, but a tax number issued by an EU country, or (a company) a permanent establishment in one | Yes, as resident in that EU country too | As for an EU seller |
| Based in the UK, no tax number from an EU country | No; a UK marketplace reports you to HMRC under the UK rules | Name, address, date of birth, National Insurance number (a person) or company registration number (a UK company) |
Who is reported: the 30 sales or EUR 2,000 line
A government body, and a listed company or a member of its group, are left out whatever they sell (Annex V, Section I, B(4)(a)-(b)). Any other seller of goods drops out of DAC7 only while both halves of the line hold. In the law’s words, the excluded seller is one “for which the Platform Operator facilitated less than 30 Relevant Activities by means of the sale of Goods and for which the total amount of Consideration paid or credited did not exceed EUR 2 000 during the Reporting Period” (Annex V, Section I, B(4)(d)). So 30 sales is enough on its own, and so is more than EUR 2,000.
Three details change the count:
- The year is the calendar year (Annex V, Section I, C(6)).
- Each platform operator counts only its own sales. The line is about what “the Platform Operator facilitated”, so 20 sales with one operator and 20 with another do not add up. Stores run by one operator count together (Annex V, Section I, A(2) and B(4)(d)).
- The EUR 2,000 is what you are paid, “net of any fees, commissions or taxes withheld or charged” by the marketplace (Annex V, Section I, A(10)).
Goods means “any tangible property” (Annex V, Section I, C(9)). The same rules reach property rental, personal services and the rental of any mode of transport (Annex V, Section I, A(8)), and the 30 sales or EUR 2,000 line is for goods only.
Marketplaces put the line in their own words, and both read here round it the same way. Etsy reports a seller who completes “30 or more transactions in a calendar year with physical goods” or makes “€2,000 (EU) (circa GBP £1,700) … or more on physical goods sales after taxes and fees”, and also any seller of made-to-order digital items (Etsy Help). eBay reports where the consideration “equals or exceeds €2,000” or you “complete 30 or more transactions”, with cancelled transactions left out (eBay Help). The law excludes a seller paid exactly EUR 2,000 with fewer than 30 sales; both marketplaces report one.
What the marketplace collects from you
The law lists what the marketplace collects from each seller over the line (Annex V, Section II, B(1) and B(2)):
| You sell as | The marketplace collects |
|---|---|
| A person, sole traders included | first and last name; primary address; any TIN issued to you, with each EU country that issued it, or your place of birth if you have none; your VAT number, where available; your date of birth |
| A company or other entity | legal name; primary address; any TIN, with each EU country that issued it; your VAT number, where available; business registration number; any permanent establishment in the EU through which you sell, with its EU country |
A TIN is a taxpayer identification number “issued by a Member State, or functional equivalent in the absence of a Taxpayer Identification Number” (Annex V, Section I, C(3)). Your primary address is your home if you sell as a person, and your registered office if you sell as a company (Annex V, Section I, C(5)). So a tax number from a country outside the EU is not on DAC7’s list; a person with no EU tax number gives a place of birth instead. If the EU country you are resident in issues you no TIN, or does not require it to be collected, that one item is spared (Annex V, Section II, B(4)).
The marketplace checks what you give it against its own records and against any free electronic interface an EU country or the EU offers, such as the one for VAT numbers (Annex V, Section II, C(1)). If a tax authority tells it something is wrong, it asks you to correct it and to send proof, such as a valid government ID or a recent tax residency certificate (Annex V, Section II, C(3)). It may rely on details collected and checked in the last 36 months (Annex V, Section II, F(3)); eBay asks sellers to refresh them every 36 months (eBay Help).
Why a seller outside the EU is asked for a tax ID
The law has the marketplace collect these details from every seller over the line, wherever that seller lives, and only then work out residence from them (Annex V, Section II, B and D). Your address, and the absence of a tax number from an EU country, are how it learns that you are outside the EU. DAC7’s list stops at a tax number an EU country issued; a request for your home country’s number comes from the marketplace’s own rules and other reporting laws. Etsy says it asks only for what is “legally required depending on factors like where you’re located, where you sell, and how much you earn on Etsy” (Etsy Help).
DAC7 is not the only law behind the request. Etsy names the EU’s Digital Services Act, the US INFORM Consumers Act, Canada’s reporting rules and the UK’s reporting rules in the same breath (Etsy Help). Under the Digital Services Act a marketplace selling to consumers in the EU must hold each trader’s name, address, phone number and email address, an identity document, payment account details, any trade register number, and a promise to offer only products that comply with EU law, before it lets the trader sell (DSA Art. 30(1)Regulation (EU) 2022/2065, Digital Services ActArticle 30, paragraph 1Click opens the article on EUR-Lex.). That law asks for no tax number. The tax number comes from the tax reporting rules. The UK’s rules, for one, ask for your tax number and the country that issued it (GOV.UK).
When the marketplace asks a seller outside the EU for a tax number, the answer is your own country’s tax number, entered where it asks. Etsy’s field for it is Additional taxpayer identification, on the Legal and tax information page.
UK sellers are reported to HMRC under the UK’s own rules
The UK is outside DAC7, and it has its own platform rules since 1 January 2024. A UK seller with a tax number from an EU country is still resident in that country for DAC7 (Annex V, Section II, D(1)). The UK government’s guidance for sellers: “Your details will not be reported if you: make fewer than 30 sales of goods in a calendar year; receive less than 2,000 euros (about £1,700) for those sales” (GOV.UK). A person gives full name, address, date of birth and National Insurance number; a UK company gives its company registration number as its tax number. HMRC passes your details on to the tax authority of another country that follows these rules, if you live there. Etsy reports UK sellers to HMRC under these rules (Etsy Help).
The Commission has found the information the UK, New Zealand and Canada exchange equivalent to DAC7’s, and lists, country by country, which EU countries have switched that exchange on (Commission, DAC7).
What the marketplace reports, and when
By 31 January the marketplace reports, for the year before, everything it collected from you, the bank account your money is paid to and the name on it, each EU country you are resident in, the total it paid you in each quarter with the number of sales, and the fees, commissions and taxes it withheld or charged in each quarter (Annex V, Section III, A(1) and B(2)). It reports to the tax authority of one EU country, its own or the one it registered in, which passes the data to the tax authority of each EU country you are resident in (Art. 8ac(2) of Directive 2011/16/EU). eBay, run from Germany as eBay GmbH, reports to the German Federal Central Tax Office (BZSt) (eBay Help).
You get your own copy of what was reported, by the same 31 January (Annex V, Section III, A(5)). If you sell as a person, the marketplace must tell you, before your data is reported, that it will be collected and passed on (Art. 25(4) of Directive 2011/16/EU). Etsy sends a PDF summary (Etsy Help); eBay offers a PDF and a CSV of the sales behind it under Payments, Taxes, Platform Tax Transparency Report (eBay Help).
The Commission is plain about what this is: “DAC7 does not impose any new tax or in any way regulate the taxation of income earned by sellers on digital platforms” (Commission, DAC7). Whether you owe tax on what was reported is a question for your own country’s tax rules. Your VAT on sales into the EU is a separate matter: EU VAT for online sellers.
What happens if you do not answer
The law leaves the marketplace no choice. If you do not give the details after two reminders, and no sooner than 60 days after the first request, it “shall close the account of the Seller and prevent the Seller from re-registering on the Platform or withhold the payment of the Consideration to the Seller as long as the Seller does not provide the information requested” (Annex V, Section IV, A(2)).
Marketplaces act on their own timetable. Etsy puts your shop on pause in vacation mode and stops your payouts after its deadline, and closes the shop if you still have not answered 90 days later (Etsy Help). eBay holds payouts or restricts selling (eBay Help). Etsy states its deadline is set by law and its support staff cannot lift the pause.
The fines in DAC7 are for the marketplace. Each EU country sets penalties for breaches of its own rules made under the Directive (Art. 25a of Directive 2011/16/EU). What reaches you is the closed account or the held money.
What you can skip
What the law leaves open
A tax number from an EU country. A seller living outside the EU may hold a tax number issued by an EU country, for example after registering there for VAT. The residence rule is literal: “Where different from the Member State of the Seller’s Primary Address, a Reporting Platform Operator shall consider Seller resident also in the Member State of issuance of TIN” (Annex V, Section II, D(1)). A TIN you give the marketplace from an EU country makes you resident there for DAC7. The VAT number is a separate item on the list, and the residence rule does not name it.
A permanent establishment. A company that tells the marketplace it has a permanent establishment in an EU country is treated as resident there too. Whether stock in an EU warehouse makes one is not decided by DAC7; it turns on the tax treaty between your country and that EU country, which is an edge case. eBay’s own words: a permanent establishment “is generally a fixed place of business, but the exact definition varies from country to country depending on any tax treaty that may be in place” (eBay Help).
The Platform seller reporting row on All EU rules sits beside the other duties of selling into the EU.
Sources
13 sources
- Art. 1(20)Directive (EU) 2021/514, DAC7 (platform seller reporting)Article 1, paragraph 20Click opens the article on EUR-Lex., Art. 2(1)Directive (EU) 2021/514, DAC7 (platform seller reporting)Article 2, paragraph 1Click opens the article on EUR-Lex.Council Directive (EU) 2021/514 (DAC7) - adds Annex V, the platform rules, to Directive 2011/16/EU; applies from 1 January 2023
- Annex V, Section I, A(1), A(2), A(8), A(10), B(1)-B(4), C(3), C(5), C(9)Directive 2011/16/EU, consolidated text of 1 January 2026 - Annex V, Section I: platform, relevant activity, consideration, seller, reportable seller, excluded seller, TIN, primary address, goods. Accessed 2026-10-02
- Annex V, Section II, A, B(1), B(2), B(4), C(1), C(3), D(1), F(1), F(3)Directive 2011/16/EU, consolidated text of 1 January 2026 - Annex V, Section II: what the platform collects, how it checks it, residence of the seller, deadlines, 36-month reliance
- Annex V, Section III, A(1), A(5), B(2)Directive 2011/16/EU, consolidated text of 1 January 2026 - Annex V, Section III: report by 31 January, a copy to the seller, what is reported
- Annex V, Section IV, A(2)Directive 2011/16/EU, consolidated text of 1 January 2026 - Annex V, Section IV: account closed or payment withheld after two reminders and 60 days
- Art. 8ac(2)Directive 2011/16/EU, consolidated text of 1 January 2026 - exchange with the EU country where the seller is resident
- Art. 25(4), Art. 25aDirective 2011/16/EU, consolidated text of 1 January 2026 - telling sellers their data is collected and reported; penalties set by each EU country
- Art. 30(1)-(3)Regulation (EU) 2022/2065, Digital Services ActArticle 30, paragraphs 1 to 3Click opens the article on EUR-Lex.Regulation (EU) 2022/2065 (Digital Services Act) - traceability of traders on online marketplaces
- Commission page, not lawEuropean Commission, DAC7 - no new tax, platform obligations, equivalence for the United Kingdom, New Zealand and Canada. Page modified 28 May 2026, accessed 2026-10-02
- Marketplace policy, not lawEtsy Help, What Information Does Etsy Report for Sellers in the EU, UK, and Canada?, last edited 17 February 2026 - accessed 2026-10-02
- Marketplace policy, not lawEtsy Help, Etsy Asked Me to Confirm My Seller Info, last edited 15 May 2026 - accessed 2026-10-02
- Marketplace policy, not laweBay Help (Ireland), EU DAC7 and the Platform Tax Transparency Act - Sales reporting obligations - accessed 2026-10-02
- UK government guidance, not EU lawUK government, Selling goods or services on a digital platform - the UK rules from 1 January 2024, UK platforms report to HMRC, a seller gives a tax number and the country that issued it. Updated 22 September 2025, accessed 2026-10-02