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DAC 7 in EU

by laura32 » Wed Feb 28, 2024 5:18 pm

Hi everyone, I have a store in which I sell portraits. I see how Etsy automatically deducts taxes and commissions from my sales. Now I get a message from Etsy that from 2024 Etsy will start transmitting information to the tax service (something about DAC7). Etsy asks for an update tax information. I'm very confused. Does this mean that in addition to taxes that Etsy deducts automatically, I will also need to pay taxes to other tax authorities? Or is what Etsy deducts from my sales already considered a tax deduction? Has anyone already submitted their data to DAC 7? Could you please explain to me what to do? I don't really understand such topics. Those who have already gone through all this, please could you answer, do you pay a lot of taxes in EU? What % of taxes do you pay?
Posts: 80

Re: DAC 7 in EU

by Markus » Wed Feb 28, 2024 7:02 pm

I understand your confusion. DAC7 reporting refers to the EU's Directive on Administrative Cooperation, which aims to improve cross-border tax compliance. It requires platforms like Etsy to collect and report data on sellers' transactions to tax authorities. While Etsy already deducts certain taxes and commissions, you may still be responsible for additional taxes depending on your specific circumstances. It's essential to update your tax information as requested by Etsy and ensure compliance with DAC7 reporting requirements. As for tax rates in the EU, they vary by country and income level. It's advisable to consult with a tax professional for personalized advice. Additionally, tools like VATCompliance can help streamline dac 7 reporting processes by automatically tracking and generating required reports with ease.
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