The DAC7 Directive, also known as the "Directive on Administrative Cooperation", is an important legal instrument designed to improve administrative cooperation related to taxation within the European Union. This directive and all previous amendments (DAC1. DAC2, etc.), were all designed to combat tax evasion and improve transparency between the member states of the EU.
DAC7 particularly focuses on the exchange of information in relation to income earned through digital platforms, such as intermediary platforms of vacation rentals like ours.
To ensure proper taxation and reduce opportunities for tax evasion, DAC7 requires intermediary platforms of vacation rentals, such as Holidu, to collect and share certain financial information to the Tax Agency about the owners and properties booked through their system. Under DAC7, Holidu is required to report the identification data of the property and property owner, the revenues made through our platform by the host as well as the number of nights booked, fees, commissions or tax per property. To make this declaration, we need some additional information from our Hosts. More specifically, we need a valid identification number for each host and for companies we also need the commercial registration number. In this FAQ we have provided answers to some of the most commonly asked questions about DAC7 and how our Hosts can provide the information we need.
| What is the purpose of DAC7? | DAC7 aims to strengthen tax transparency and cooperation in the digital economy by ensuring that income from digital platforms is declared to tax authorities, including vacation rental platforms. This will help prevent tax evasion and ensure fair taxation of income earned through such platforms. More information regarding DAC7 is available on the website of the German Tax Agency, here. |
| Does Holidu report data regarding my properties/bookings directly to the Tax Authorities of EU Member States? | Yes, as a company based in Germany, Holidu submits the DAC7 declaration to the German Tax Office (Bundeszentralamt für Steuern). After this, the German Tax Office is responsible for forwarding this data to the Tax Authorities of the relevant EU Member State(s). |
| What information is Holidu required to report to the Tax Office under DAC7? | Holidu is required to report the following information: - Identification data of the property owner (including Taxpayer Identification Number, address, birthday, and companies' Commercial Registration Number) - Identification data of the property (including complete address) - Total revenue earned by Host - Fees, commissions or tax per property - Total number of days booked per property |
| Do you pass on information from all bookings to the Tax Office? | Yes - Holidu is required to do this under DAC7. For each host, we must report the revenues earned from all bookings. And per property, we must report the total number of days booked, fees, commissions or tax included. |
| Do I, as a Host, need to make a declaration under DAC7? | This depends on your legal relationship with the property. Only platforms offering intermediary services are required to make a declaration under DAC7. If you are an intermediary then you may need to make a declaration under DAC7. Please consult your tax advisor for further information. |
| Does this affect my income tax declaration? | DAC7 does not affect your income tax declaration, and you still need to declare these as you normally would. Please consult your tax advisor for further information regarding income tax declarations. |
| My property is located in the EU, but I am not an EU resident. Does DAC7 apply to me? | Yes. DAC7 applies to all properties located within the EU territory. |
| What information does Holidu need in order to make the declaration under DAC7? | To make the declaration, we need: 1. Your Taxpayer Identification Number (TIN). 2. If you are registered as a company, we also need your Commercial Registration Number. |
| Where can I enter my TIN? | Please contact your account manager for support with updating your personal TIN. |
| Is it mandatory to enter my TIN? | Yes, this is mandatory. We need this information in order to make the declaration under DAC7. |
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I have entered my TIN but it has not been accepted, why is this? |
Our system checks the format of the ID number you have entered. If you enter these and they are not accepted, it means that you have given an invalid number. Please check the data you have entered and try again. |
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I manage the property as an administrator, and I am responsible for declaring the property's income to the Tax Office under my name. Should I add my details as data for the DAC7 declaration or details of the actual property owner? |
As you are responsible for declaring income and taxes for the property, please include your data for the declaration. |
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I am registered as a company. Will Holidu report the DAC7 data under my personal name or my company's? |
If you are registered as a company, have indicated so in your Holidu account and have provided your company ID number, we will report the data under the company name. Otherwise, we will report it under the individual's name. |
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I am registered as a company. Do I need to provide any additional data? |
Yes, Hosts registered as a company also need to provide us with their business/commercial registration number. |
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I was previously registered as a company, but this is no longer the case. How can I change this in my Holidu account so that I can provide the correct information for DAC7? |
Please reach out to your account manager who will help you to change the status of your account. Once this is done, you can follow the guidance in this FAQ to provide your DAC7 data. |
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What are the penalties for non-compliance with DAC7? |
In the event that our hosts fail to provide us with the required information, we will be required by DAC7 to freeze all future payouts until such information is provided. |
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What should I do if my data changes in the future? |
If your data changes, please update this immediately in your Holidu account. You can find details on how to do so as part of this FAQ. |
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My property is a boat. Do you still need my data for the DAC7 declaration? |
Yes - if your property is a boat we also need to make a DAC7 declaration for your bookings. |
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Holidu sent me a form asking that I fill in data regarding DAC7, but the link doesn't work |
The form only works on the mobile app and on desktop formats. Please make sure that you are using one of those to access the form. Unfortunately, the form is not available on a mobile browser. |
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The form that Holidu sent shows a different name to the name of the account holder |
Please ensure that you are signed up with the correct email address, which matches the email address for the account. You should then see the correct information. |
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Will I get a confirmation when I submit all the information via the form? |
No, you will not receive a confirmation. But you can check the data by logging into your Holidu account. If you see the data there, it has been successfully saved. |
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The email that Holidu sent to me was in my name, however, I am registered as a company. Will you report data under my personal name or that of the company? |
If you are registered as a company, have indicated so in your Holidu account and have provided your company ID number, we will report the data under the company's name. Otherwise, we will report it under the individual's name. |
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Why does Holidu need to send this data to the tax authorities? |
Holidu is required by law to make this declaration under the DAC7 Directive. |
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Why is Holidu sharing my personal information with the Tax Office? |
Holidu has a legal obligation to do this, under the DAC7 Directive. |
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If I deactivate my Holidu account now, will my data still be shared? |
Yes. Holidu is required to report data for all bookings made through our platform, regardless of whether the account is still active. |
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Will Holidu use my tax information for any other purposes? |
Holidu will only use your information if we have a legal obligation to do so. It will not be used for any other purpose. |
| Where can I find my Taxpayer identification number?” |
Your Taxpayer Identification Number (TIN) can be found in different documents depending on your country. You can find more information by clicking on the following link |
If you have any other questions or concerns, you can contact our customer support.