Complete DAC7 Guide: Tax Transparency on Platforms

By Hugo Ribeiro, Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting

Introduction to the DAC7 Directive and the New Digital Transparency Paradigm The digital economy has radically transformed how goods are traded and services are provided, creating unprecedented challenges for tax administrations worldwide. In Portugal, the transposition of Directive (EU) 2021/514, commonly known as DAC7, represents a historic milestone in the fight against tax evasion and the promotion of tax fairness. This regulation obliges digital platform operators to collect and report detailed information about the income earned by their sellers and service providers. The relevance of th…

Key Takeaways

• Sales over €2,000 or 30 annual transactions are reported to the Tax Authority.
• DAC7 covers local accommodation, personal services, and sales of goods.
• Platforms can block accounts if the updated NIF is not provided.
• The Tax Office automatically matches data between platforms and tax returns.

FAQ

What is DAC7?

It is a European directive requiring digital platforms to report seller income to tax authorities to combat tax evasion.

What is the threshold for reporting?

Sellers with more than 30 transactions or who receive more than €2,000 in a calendar year are automatically reported by the platform.

Are Vinted and OLX covered by DAC7?

Yes, if the seller exceeds the limits of 30 sales or €2,000, these platforms must send the data to the Tax Authority.

What happens if I don't declare the income?

The Tax Authority will match the data from the platform with your return. Omissions lead to audits, fines, and interest.