DAC7 is a European Union directive requiring digital platforms like Vestiaire Collective to collect and report specific seller information to the relevant tax authorities. This directive aims to increase transparency and ensure tax compliance for online transactions.
Who is affected by DAC7 reporting?
Sellers based in the EU or selling to buyers within the EU may be subject to DAC7 reporting if they meet the following criteria within a calendar year:
- You have completed 30 or more transactions, and
- You have earned €2,000 or more in gross payments from sales.
When will Vestiaire Collective report DAC7 data?
If you meet the DAC7 reporting criteria, Vestiaire Collective will submit the required information to the relevant tax authorities by January 31st of the following year. For example, reporting for the 2024 tax year will be submitted by January 31st, 2025.
What information is reported?
Under DAC7, Vestiaire Collective is required to report:
- Your full name or business name
- Your tax identification number (TIN)
- Your address and country of residence
- Your bank account details (if applicable)
- Your total gross sales and transaction count
What happens if I don’t provide my tax information?
Failure to provide the required tax information may lead to:
- Suspension of payouts
- Account restrictions preventing further sales
- Potential account closure if the required data is not provided within the legal timeframe
To ensure compliance and avoid disruptions, we strongly recommend updating your tax information as soon as requested.
If you have questions about your tax obligations, we encourage you to consult a tax advisor for personalized guidance.