DAC7 - EU Tax Directive

Introduction

The DAC7 Directive, also known as "Directive on Administrative Cooperation", is an important legal instrument designed to improve administrative cooperation in 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. In particular, DAC7 focuses on the exchange of information in relation to income earned through digital platforms, such as intermediary platforms in vacation rentals like ours. 

To ensure proper taxation and reduce opportunities for tax evasion, DAC7 requires intermediary platforms in 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 Partners; as well as the number of nights rented, fees, commissions or tax per property.

For this report, we need your help to provide additional information of your properties listed on Holidu. In Particular we need the following:

• Your taxpayer identification number
• Your commercial register number (only for legal business entities)

In this FAQ we have provided responses to some of the most commonly asked questions about DAC7 and how our Partners 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, including vacation rentals platforms, is declared to tax authorities. 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.

My property is located in the EU, but I am not a EU resident. Does DAC7 apply to me?

Yes. DAC7 applies to all properties located within the EU territory.

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 Agency. After this, the German Tax Agency 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 Agency under DAC7?

Holidu is required to report the following information:

• Your identification data (including TIN, address, and commercial register number)
• Identification data of the property (including complete address)
• Your total revenues earned
• Fees, commissions or tax per property
• Total number of days rented per property

Do you pass on information on all of my rental bookings to the Tax Agency?

Yes - Holidu is required to do this under DAC7. For each Partner, we must report the revenues earned from all bookings. And per property, we must report the total number of days rented, fees, commissions or tax included.

Do I as a Partner 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 declaration of income taxes?

DAC7 does not affect your declaration of income taxes, and you still need to declare these as normal. Please consult your tax advisor for further information regarding income tax declarations.

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 Register Number. 

Is it mandatory to enter my Tax ID and Commercial register Number?

Yes, this is mandatory. We need this information in order to make the declaration under DAC7.

Where can I enter my Tax ID and Commercial register Number? 

You can do it through your Holidu account by clicking on this link. If you cannot access your account, please reply to the email we have sent you or contact your account manager.

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 in the previous question.

I have entered my data but it has not been accepted, why is this? 

If you have an incorrect VAT number in the “Billing information” section, the system blocks any update in your account. This could happen because the VAT is registered under a different legal name or address. Please contact us to correct your data.

Holidu sent me a link asking that I fill in data regarding DAC7, but the link doesn't work

The link is available on desktop and mobile browser formats. If you keep having issues, please reply to the email we have sent you or contact your account manager.

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. You should then see the correct information. If you manage multiple accounts with the same user email address, please fill out the data for all the accounts.

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.

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.

Why is Holidu sharing my personal information with the Tax Agency?

Holidu has a legal obligation to do this, under the DAC7 Directive.

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.

Will Holidu use my tax information for any other purposes?

Holidu will only use your information where we have a legal obligation to do so. It will not be used for any other purposes.

If you have any other questions or concerns, you can contact our finance or partner support team.