Smarter Data. Compliant Growth

Marketplace operators must collect a defined set of data from sellers before they can be reported under DAC7. For individual sellers this includes full name, primary address, date of birth, and tax identification number (or place of birth if no TIN is available). For entity sellers it includes legal name, registered address, tax identification number, and business registration number.

Operators also need to collect financial account details, so payments can be linked to the correct seller, and property location data where the seller lists real estate.

This data has to be verified against reliable sources, not just self-reported. Marketplaces can use official registries, government databases, or documentary evidence to confirm accuracy. If a seller doesn't provide the required information within 60 days of two reminders, the operator is required to close their account and withhold future payouts until the details are supplied.

Collection isn't a one-off exercise either. Operators need to keep this data current and re-verify it periodically, particularly where sellers' circumstances change.

A DAC7 notification is the message a platform sends to a seller confirming that their income and transaction data has been reported to the tax authorities. Platforms are required to notify each reportable seller before the report is filed, giving them visibility into what information has been shared.

The notification typically includes the seller's reported income, the number of transactions, and the tax identification details used. Sellers can use this notification to cross-check their own tax filings and flag any discrepancies before the reporting deadline.

For platforms, sending timely and accurate notifications is part of meeting DAC7 due diligence obligations, not just a courtesy step.

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Under DAC7, digital platforms operating in the EU must collect, verify and report information on sellers using their platform to earn income. This applies to platforms facilitating the rental of property, personal services, the sale of goods and the rental of transport.

Platforms need to identify reportable sellers, gather details such as name, address, tax identification number and date of birth (for individuals) or registration number (for entities), and verify this information against reliable sources. They then report seller income and transaction data to their local tax authority once a year, with the first reports due by 31 January following the reportable period.

Platforms with sellers across multiple EU member states only need to report once, in one member state, and that data is automatically shared with the other relevant tax authorities.

Failure to meet these obligations can result in penalties, and in some jurisdictions, seller accounts may need to be restricted or closed if sellers fail to provide the required information.

They're the same idea at different levels: CARF is the OECD crypto-asset reporting framework, DAC8 is the EU directive that brings it into Member State law. In practice you may owe both, to different authorities, from one dataset. We hold the data once and render whichever schema each recipient requires.

Before, if you can. Supervisors increasingly want to see that your systems and controls actually exist rather than that you've described them, and firms that wait until the licence lands spend their first quarter building instead of onboarding. Standing the platform up during preparation also strengthens the operational sections of your application.