What is DAC7?
DAC7 is an EU tax law that helps ensure online sellers pay their fair share of tax.
This law went into effect on 1 January 2023. This means that Reverb will be required to report information on your sales and personal details to tax authorities if you’re an EU seller that started selling on the platform in 2023 and reached 30 transactions or €2,000 or more in sales. For the 2024 tax year, Reverb will be required to report on all sellers who reside in the EU and meet the sales threshold, regardless of when you joined Reverb.
Which sellers need to provide tax information under DAC7?
If you’re a seller who started selling on Reverb in 2023 and resides in the EU, Reverb is required to send your information to the relevant tax authorities when:
- You complete 30 or more transactions in a calendar year, or
- You make €2,000 or more in sales after taxes and fees in a calendar year.
Sellers who don’t meet either of these thresholds within a year are exempt from reporting.
How to enter your taxpayer information for DAC7
When entering your information on Reverb, make sure your information exactly matches what you use when filing taxes.
- On Reverb.com, head to your tax profile page.
- Select whether you are operating as an individual or as a business. This should be based on how you file for taxes.
- For accounts registered as an individual entity, enter your tax identification number, full legal name and address, and date of birth.
- For accounts registered as a business entity, enter your tax identification number, full legal name and address, and business registration number.
What if I don’t submit the required information?
If Reverb reaches out to you to request your information and you don’t provide it by the deadline, it may result in your account being locked. You won’t be able to unlock your account until you provide the required information.
What if my reported information is incorrect?
If you’re having trouble saving your tax information, you may have formatted your tax ID incorrectly or provided an invalid address. Learn more about formatting your tax ID.
Please review your tax profile page to make sure that your information is accurate and up-to-date for reporting. If you don’t enter your information successfully, it may result in your account being locked.
What’s on my DAC7 Seller Report?
Reverb sends out a DAC7 Seller Report annually to eligible sellers. On this report, you will find:
- Your seller information
- Tax identification number
- Quarterly sales totals
- Order counts
- Selling fee amounts
- VAT on selling fees
- Reverb–remitted sales tax
Amounts are totaled, then rounded down to the nearest whole number in your final billing currency for 2023. If you see a negative order count on your report, that indicates that you had more refunds than new sales in that quarter.
What EU seller data is Reverb required to report under DAC7?
The information that Reverb is required to share with EU tax authorities depends on whether you’re registered as an individual or a business entity.
View information Reverb is required to report for individuals
- First and last name
- Primary address
- Date of birth
- VAT Identification/Registration number (where available)
- Any TIN (Taxpayer Identification Number) issued, plus each Member State of issuance
- A bank account number that your sales funds are paid or credited to
View information Reverb is required to report for business entities
- Legal name/Shop name
- Primary address
- VAT Identification/Registration number (where available)
- Any TIN issued, plus each Member State of issuance.
- Company registration number
- A bank account number that your sales funds are paid or credited to.
Reverb is legally required to collect and verify the above information to report to local authorities in order to comply with DAC7. Please review and update your tax information to make sure it’s accurate for reporting.
If Reverb reaches out to you to request your information but you don’t provide it, it may result in your account being locked.
Numerical data collected
Reverb is also obligated to share information on sellers’ transactions with EU tax authorities, including:
- Total number of transactions completed during the period.
- Total amount paid or credited to the seller during each quarter of the period. The total amount paid is your total gross sales minus any refunds, fees, and Reverb-remitted taxes.
- Total amount of fees, commissions, or taxes withheld or charged by Reverb during each quarter of the period.