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Since its entry into force, the European DAC 7 directive has upset the tax obligations of digital platforms. Marketplaces, rental sites, service or ticketing platforms: many players are now required to transmit certain information to the tax authorities. What types of platforms are targeted? What economic transactions fall within the scope of application? This detailed analysis takes stock of the categories concerned and the concrete implications of DAC 7 for each sector.
Directive No. 2021/514 of 22 March 2021, known as the “DAC 7” directive, establishes harmonized rules aimed at organizing the transmission of information by platform operators within the European Union (EU).
After having recently highlighted all the main points of the reporting requirements of the DAC 7 Directive, more attention should be paid to the operators concerned.
In summary, the aim is for platform operators who:
The transactions concerned by the reporting obligations are:
It is appropriate to ask the question of the scope of application of the DAC 7 directive in respect of certain actors.
Online marketplaces represent a fairly heterogeneous category, both because of the different areas in which they find their place and the means implemented by them as part of their offer to users.
Thus, administrative doctrine recognizes that only platform operators who may “have reasonable knowledge of the payment of transactions” are concerned. This actually excludes online marketplaces that do not manage, directly or indirectly, the payment as part of their offer (e.g. Facebook Marketplace).
In other cases, some online market platforms allow the user to pay for the transaction either online or by cash payment directly between the seller and the buyer. In the latter case, the operator is not aware of the completion of the transaction and only transactions for which the payment is made online, whether or not the platform goes through a service provider to ensure the payment, fall within the scope of DAC 7's declaration.
It should be noted that subcontracting payment by the Marketplace (for example through Lemonway, Adyen or Stripe Marketplace) does not exempt you from these obligations.
Ultimately, according to our analysis, would fall within the scope of the DAC 7 directive, online marketplaces that facilitate transactions in the areas described below.
Indeed, online marketplaces such as LeBonCoin, Back Market, Back Market, Rakuten, Rakuten, Rakuten, Vestiaire Collective, Troc.com, Vinted, VeePee... connect buyers with sellers in order to carry out transactions for the sale of physical goods. In addition, all the operators mentioned allow, among other possibilities, to pay directly online. In such cases, the operator is aware of the amount of the consideration and falls within the scope of DAC 7 directive.
In the sense of personal services, services provided by natural persons at the request of a user must be understood. The service can be carried out physically or online. In this respect, online service markets such as Malt, ComeUp, SuperProf, AlloVoisins, HelloAsso... are, in principle, operators affected by the DAC 7 directive.
In the same way as other online markets, those allowing the carrying out of transactions relating to the rental of real estate (regardless of the use and nature of the rental) as well as other real estate (storage space, swimming pool, sports field...) and parking spaces.
As part of these activities, in our opinion, the following platforms are subject to the reporting obligation: MorningCroissant, PAP.fr, Welkeys, Lodgis, Anybuddy...
Travel agencies that act as an opaque intermediary within the meaning of VAT are also targeted.
Finally, platforms for renting means of transport that are not accompanied by a driving service also fall within the scope of the DAC 7 directive. Administrative doctrine specifies that land vehicles, maritime boats and aerial devices are in particular covered.
As a result, it is possible to cite numerous online markets such as Roadstr, Getaround, Click&Boat, Locat'air...
Ticket sales platforms, such as PassetOnBillet, allow users to resell show tickets. These transactions are expressly mentioned in administrative doctrine as constituting sales of goods falling within the scope of the reporting obligations of the DAC 7 directive.
Thus, these platforms must identify ticket resellers who have made at least 30 transactions or who have made sales for a total amount of more than €2,000 (they are no longer casual sellers).
Note that transport services accessible to the public, provided according to schedules and routes defined in advance (e.g. professional operators of trains, buses, planes, boats), are not considered personal services because they are not services provided pursuant to the request of a user.
This therefore excludes transport ticket sales platforms such as Trainline and Omio from the scope of the DAC 7 directive.
On the other hand, platforms that allow the resale of pre-existing tickets, which are quite rare, would be in the field.
Steam is an online video game distribution platform. Therefore, it is not tangible property. Therefore, even though Steam allows game publishers to sell their products online through its platform, Steam is not an operator affected by the reporting obligation of the DAC 7 directive.
The same reading applies to the Apple App Store or to the Epic Games Store.
Crowdfunding platforms like Tipeee allow project creators to raise funds from contributors. In exchange for their contributions, contributors often receive rewards if the project reaches its funding goal. If the contribution is directly linked to the delivery of tangible property or the provision of a service provided by a natural person, to the contributor via the platform, it may be considered as facilitating the sale or service.
The exact nature of the transaction (pure donation or donation with consideration) is thus decisive for the application of the DAC 7 directive to participatory financing platforms (or crowdfunding”).
Twitch and Kick are platforms that allow “streamers” to generate revenue through donations, subscriptions, or ads. Therefore, it is possible to consider that they facilitate the provision of services by “streamers” for the benefit of “viewers” (viewers).
With this in mind, the “streaming” platform Twitch has been asking streamers since July 2023 for the necessary information from streamers in order to comply with the declarative obligations of the DAC 7 directive.
Twitch probably delays streamers as they can in some cases provide rewards based on viewer payments (videos on demand, interactions, etc.).
Online art galleries make it easy for artists and buyers to sell works of art.
As such, the sale of cultural goods and works of art are expressly mentioned in transactions for the sale of goods subject to the reporting obligation. Therefore, online gallery owners (whether they are purchasers, retailers or transparent intermediaries connecting the buyer and the seller) follow the same regime as online marketplaces (“marketplaces”) and fall within the scope of the DAC 7 directive as soon as they are aware of the amount of the consideration (in particular by managing the payment directly online).
These platforms must therefore identify artists who exceed one of the thresholds and who are therefore no longer considered as casual sellers.
This measure is intended to ensure that income from online art sales is properly reported. Online art galleries must therefore put in place mechanisms to identify the artists and transactions concerned.
It is important to note that these reporting obligations linked to the DAC 7 Directive are in addition to those existing in the fight against money laundering and terrorist financing (AML/CFT) for art market players, including gallery owners.
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