Glossary · UK
What is DAC7 Digital Platform Reporting?
EU and UK rules requiring digital platform operators (Airbnb, Vinted, Etsy, eBay) to report seller income data to HMRC from 2024.
Full Definition
DAC7 (EU Directive on Administrative Cooperation) was transposed into UK law and came into force for UK platform operators from 1 January 2024. It requires digital platform operators to collect and report seller information to HMRC annually. Platforms covered include rental marketplaces (Airbnb, SpareRoom), personal selling marketplaces (Vinted, eBay, Depop, Amazon, Etsy), ride-sharing and delivery platforms, and freelance marketplaces. Sellers with more than 30 transactions or GBP 2,000 in proceeds per year must be reported. HMRC cross-references this data with Self Assessment returns as part of its HMRC Connect data-matching programme. Online sellers who have not declared income from platforms are increasingly receiving HMRC nudge letters. Sellers with under GBP 1,000 total income may be covered by the trading allowance -- but should retain evidence they qualify. Occasional selling of personal possessions at less than original cost is not taxable, but frequent reselling is.