As of January 1, 2023, new reporting obligations for digital platform operators such as Amazon, Allegro, eBay, Emag and Kaufland apply across the European Union. The changes stem from the implementation of the EU’s DAC7 directive, which introduces a new level of administrative cooperation between member states – all in an effort to tighten the tax system and catch revenues that may have previously remained out of the reach of tax administration.
In this article, I will explain what exactly the DAC7 directive is, who is covered by the reporting obligation, how the new regulations affect sales made through digital platforms, and how to prepare your account to avoid withholding, suspension of sales or problems with the national tax administration.
Spis treści
The DAC7 directive - where did it come from and what does it apply to?
The DAC7 Directive is one of the European Union’s initiatives to clean up and tighten up the tax system in the digital age. It is an amendment to the EU’s Taxation Directive, adopted as part of a broader package of changes designed to improve the exchange of tax information among EU member states.
In practice, the idea is that tax administrations in EU member states – such as Poland, Germany, France and others – will have better access to information about individuals and companies earning income through digital platforms. The goal is to ensure that this income is properly declared and accounted for, regardless of which country it originated in.
In an era of rapid growth in the digital economy – involving online sales, short-term rentals or the provision of remote services – traditional methods of tax control have proven insufficient. Many transactions take place across borders, often without the physical presence of the seller in the buyer’s country. Therefore, it was necessary to create a more efficient system of information exchange between EU countries to more effectively monitor online activities.
Officially, DAC7 stands for Directive on Administrative Cooperation, or Directive on Administrative Cooperation in Taxation. The DAC7 Directive is the seventh amendment to the EU’s Directive on Administrative Cooperation in Taxation – hence the “7” in the name. It was adopted by the Council of the European Union in 2021 and became effective on January 1, 2023.
DAC7's main objectives
This is primarily the introduction of mandatory reporting of data on sellers and service providers by digital platform operators. These include sales platforms (e.g., Amazon, Allegro, eBay), but also those intermediating in the rental of housing, services or the provision of transportation. These platforms must collect and transmit detailed data of their users to the national tax administration, which then shares it with the tax administrations of other EU countries.
Thanks to these regulations, the business conducted on digital platforms ceases to be “invisible” to the Treasury administration, and all vendors – regardless of the scale of their operations – are required to transparently account for their revenues.
Who is affected by the DAC7 directive?
While at first glance it may seem that the DAC7 directive is a matter reserved for lawyers or multinational corporations, the reality is much more down-to-earth. In practice, these regulations apply to any retailer who makes money through digital platforms – whether they run an extensive online store or sell a few products a month from a home warehouse.
According to the regulations, the DAC7 directive covers reportable sellers, i.e. those whose data must be reported by online platform operators to the relevant tax office – in Poland to the head of the National Tax Administration. The report sent by the platform includes, among other things, the seller’s identification data, the total value of sales, the number of transactions or the country of tax residence.
The range of entities covered by the reporting is very broad and includes, among others:
Individuals and companies selling online (e.g., on Amazon, Allegro, eBay, Etsy, OLX),
service providers operating over the Internet, such as renters offering short-term housing, freelancers or online instructors,
individuals and companies engaged in providing means of transportation, renting vehicles, real estate, construction equipment or other types of goods.
Importantly, not every digital platform user will be automatically notified.
DAC7 provides for so-called “exemption limits” – platforms do not have to report data of those vendors who:
have made less than 30 transactions during the calendar year
have not exceeded the threshold of €2,000 in total revenue per year.
But beware – this exception does not give full protection. It is very common for digital platform operators to collect the data of all users, regardless of thresholds, to protect themselves in case of changes in the scale of operations or ambiguous cases. This means that even with a small scale of activity, you may still be required to provide the platform with your identification and tax data.
In short: if you sell or provide services over the Internet – you are most likely subject to the DAC7 directive, and your data may go to the national tax administration and – as part of EU administrative cooperation – to the tax offices of other EU member states.
What do digital platform operators report under the DAC7 directive?
Under the regulations, platform operators such as Amazon and Allegro are required to report data on sellers once a year to the head of the National Tax Administration, which then makes it available to other tax administrations in the EU. The reporting takes place once a year – by January 31 – and includes data for the previous calendar year.
Reports include:
Vendor identification data (name, address, tax ID),
Bank account information (if known),
The number of transactions and the total value of revenues,
tax residency status.
This obligation also applies to entities listed on a regulated securities market, as long as they use the platform as a seller.
How does the DAC7 directive work in practice on sales platforms?
The introduction of the DAC7 directive has significantly affected the daily operations of sellers using digital platforms. As early as the beginning of 2023, users of sites such as Amazon, Allegro and Kaufland began receiving notifications regarding their obligation to update their data. Operators of these platforms were required to collect and report information about their users to tax administrations, which in practice means greater control over the accuracy and completeness of registration data.
As a result, sellers may be asked to complete company data, provide a tax ID number, send an identity document or indicate their country of tax residence. These are not merely formal actions – failure to provide the required information can lead to real difficulties: delays in withdrawals, restrictions on account functionality and, in extreme cases, even temporary suspension of the account.
These are not just regulations ‘on paper’ – these obligations are already being actively enforced by platforms. An example of this is the situation of one seller operating on Amazon, who, when completing the data, entered a shortened version of the company’s name, inconsistent with the entry appearing in the National Court Register. A minor inaccuracy – but from the platform’s perspective, it meant a discrepancy that required verification. As a result, the account was blocked and the funds – withheld. The unblocking process took more than a week and involved correcting data, sending documents and contacting support. During this time, the vendor was unable to process orders, which translated into lost revenue and decreased visibility of the offering.
This situation shows how important attention to detail is. In the context of DAC7 requirements, even minor non-compliance can lead to serious consequences. Platform operators are obliged to comply rigorously, as they are themselves subject to administrative oversight and risk sanctions. That’s why it makes sense to prioritize the data update process – the earlier you ensure compliance, the more secure your platform operations will be.
How do you prepare as a vendor for the DAC7 directive?
Although the obligation to report data lies with digital platform operators, the responsibility for the accuracy of this data already lies with you – the seller. To minimize the risk of errors and inaccuracies, as I mentioned above, it is worth taking care of a few key issues:
1. check data in platform panels
Log in to any marketplaces you use (Amazon, Allegro, eBay, Kaufland, etc.) and make sure your information is complete and up-to-date: name or company name, address, tax ID, bank account number and, if required, ID. Platforms also often ask you to fill out a form confirming your tax status or country of residence.
2. ensure that the tax data is correct
All identification data must be consistent with accounting records and what appears in the KRS. Remember that the information sent by platform operators to the head of the National Tax Administration is passed on as part of EU administrative cooperation. Mistakes can have huge consequences.
3. keep accurate records
Your accounting data must match what the platforms report. If you use tools like ERP, marketplace integrations or invoice software – make sure they are set up correctly. This is especially true for those who sell in multiple countries simultaneously.
4. consult your tax advisor
If you sell in different EU countries or plan to expand, it’s worth having the support of a specialist. DAC7 is just part of a broader tax information exchange system – your advisor will help you understand where you may have additional obligations, such as VAT registration or foreign settlements.
Summary
The DAC7 directive is not a temporary solution, but a major change that has permanently affected the way sales are conducted on digital platforms across the European Union. If you do business on marketplaces, you need to be aware that your company’s information is submitted to tax administrations as part of an integrated reporting system.
In practice, this means an increase in the importance of transparency and a reduction in the possibility of tax avoidance. For reliable entrepreneurs, this should not be a cause for concern – with well-maintained documentation and compliance, the directive poses no risks. On the contrary, it can help improve competitive conditions by eliminating illegal operators from the market.
However, it is worth remembering that many technical and formal problems arise from minor oversights – a misspelled company name, a missing document or outdated registration data. Regular verification of information on platforms and attention to consistency with tax documentation is the basis for safe e-commerce operations today.
If you have doubts about whether your account meets all the requirements – it is better to check it in advance than to face account blocking at the least opportune moment.
