Glossary · UK

What is DAC7?

EU/UK directive requiring digital platforms to report sellers' income to tax authorities annually.

Full Definition

DAC7 (EU Directive on Administrative Cooperation 7th edition, adopted into UK law from January 2024) requires digital marketplaces — including Airbnb, eBay, Etsy, Vinted, Uber, Fiverr and similar — to collect information about sellers and report it to HMRC (and EU member states' equivalents) each calendar year. Platforms must report each seller's name, address, date of birth, total consideration received, number of transactions, bank account details and any NI number. HMRC uses this data to cross-check against Self Assessment returns. If you sell goods or services through a platform and earn above de minimis thresholds (28 transactions or €2,000 in a calendar year), your income will be visible to HMRC. Platforms began reporting UK-resident sellers' 2023 calendar-year data in January 2024.