MRDP & DAC7 Reporting overview

Digital platforms whose sellers earn income through them report that income under DAC7 in the EU and under MRDP, the OECD's Model Rules for Reporting by Platform Operators. Taxbit collects each seller's identity and tax residence data, takes the income payments you send, and generates an annual recipient copy for each reportable seller.

Your reporting path

Three steps take you from seller data to recipient copies. They assume your organization already has a default filer and that your sellers are set up as account owners with accounts; if not, start with Create account owners and accounts in Get started, which covers the default filer.

1. Collect seller data: get each seller's identity and tax residence data to Taxbit, in your app with the SDK or through the API.
2. Send seller income payments: send each payment from a buyer to a seller as an income transaction.
3. Retrieve DAC7 and MRDP recipient copies: get each reportable seller's annual copy to show in your app.

Data can reach Taxbit through the API, through CSV files that follow the API's data model (the Ingest page in the Taxbit Dashboard offers each template; see the MRDP/DAC7 data requirements), or, for seller data only, through the SDK.

What's involved

• Your filer carries the reporting settings. For DAC7, dac7_receiving_member_state names the EU member state designated to receive the DAC7 report. For Canadian MRDP reporting, cra_account_number is the filer's Canada Revenue Agency account number, cra_account_number_type says which kind it is (BN9, BN15, Trust, or NR4), and cra_representative_identifier is the filer's CRA representative identifier, exactly 7 alphanumeric characters. The Create filer reference has every field.
• The seller is an account owner, and the seller's identity and tax residence data attaches to it.
• Income transactions record each payment to the seller, on the seller's account.
• Recipient copies are what Taxbit generates, one per reportable seller each year, returned by GET /v1/accounts/{id}/tax-documents.

Recipient copies are also in the Taxbit Dashboard. Open the account. Its Tax Forms tab lists every generated form by tax year. The Forms page lists all generated forms for a tax year and downloads the whole set.

Where to go next

Start with Collect seller data. The Tax Documentation React SDK covers collecting seller data inside your app.

Questions? Contact your Taxbit implementation manager or Taxbit Support.