What is DAC7?

DAC7, or Directive on Administrative Cooperation (DAC) 7, is a regulatory framework introduced by the European Union. It focuses on gathering and reporting data about natural and legal entities, specifically related to their earnings, through digital platforms and marketplaces. The directive aims to promote transparency, reduce tax evasion risks, and create a level playing field for businesses operating in the digital economy.

TaxBit's DAC7 Compliance Solution aims to assist you with the end to end compliance with DAC7, with various integration options for flexible support.

How Do I Integrate with TaxBit's DAC7 Compliance Solution?

Sending Data to TaxBit

DAC7 related data can be ingested to TaxBit through API, with CSV files, or SDK (Tax Documentation Data only) to support the DAC7 workflow. The following sections will highlight integration via API and SDK. Batch data transfers will mimic a similar data model to the APIs (available on request)

There are two key pieces of data required for DAC7 and multiple ways to collect this data.

  1. Seller Account Data (API, CSV Files, Embedded Interview SDK)
  2. Income Payment Transactions (API, CSV Files)

Retrieiving DAC7 Recipient Copies

TaxBit generates annual Recipient Copies of the DAC7 Income Data for each reportable seller. These can be accessed in a variety of ways.

  1. TaxBit Dashboard - Log into the TaxBit Dashboard and navigate to a specific account. Within the "Tax Documentation" section, you can see all generated tax documents for that account, by tax year.
  2. Utilize the Get Released Tax Documents endpoint