DAC7 FREQUENTLY ASKED QUESTIONS
What is DAC 7?
The Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16 (EU) on administrative cooperation in the field of taxation (‘DAC7’) has, among other things, introduced a reporting requirement for digital transactional platform operators as well as a mandatory exchange of collected information between international tax authorities.
Through this directive, the European Union wants to improve tax cooperation between EU member states and, as part of that, the visibility of transactions of sellers through digital platforms. It introduces a reporting obligation for digital platform operators to provide certain information about sellers and their transactions to tax authorities. For platform operators DAC7 means an annual reporting obligation, starting with the full year 2023, to be reported firstly in January 2024. The European online transactional platform operators of the RB Global group are in scope for this reporting obligation.
What is the time scope of the DAC7 regulations?
The DAC7 reporting obligation applies to sellers transacting goods in one of the EU member states through our platforms. Transactions that took place prior to 2023 are not in the scope of DAC7 and will not be reported.
When am I in scope as a seller?
DAC7 applies to both private individual sellers and legal entities that sell. You are in scope for reporting if you/your company transacted as a seller through our transactional platforms during 2023 (and onwards) and if you are not stock listed / not a public body.
What data will RB Global be sharing?
The below table highlights the information we will be sharing with the relevant tax authorities in order to meet the DAC7 requirements. The information we need to collect depends on the type of customer. We are required to report the following information:
For private individuals selling:
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First and last name;
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Primary address;
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Taxpayer identification number (TIN);
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VAT identification number (if available);
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Date and place of birth;
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Bank account number that you use to receive payouts via the RB Global platforms;
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Name of the holder of the bank account if you don’t use your own bank account to operate on the RB Global platforms;
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Number of transactions you performed on the RB Global platforms during each quarter;
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Total payouts you received via RB Global platforms during each quarter;
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Commission that RB Global charged to you during each quarter (including any fees and taxes).
For legal entities selling:
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Legal name;
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Primary address;
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Taxpayer identification number (TIN);
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VAT identification number (if available);
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Business registration number;
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Countries of other permanent establishments
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Bank account number that you use to receive payouts via the RB Global platforms;
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Name of the holder of the bank account if you don’t use your own bank account to operate on the RB Global platforms;
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Number of transactions you performed on the RB Global platforms during each quarter;
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Total payouts you received via RB Global platforms during each quarter;
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Commission that RB Global charged to you during each quarter (including any fees and taxes).
Who will manage the DAC7 reporting, do I have to provide information?
We are responsible for collecting the required information and to share such with the relevant tax authority. You are not required to report any information to the tax authorities on our behalf as a result of the DAC7 legislation. In order for us to be able to report, we may ask you to provide some information to us (such as, for example, your tax identification number, official legal name, official address) via contracts, emails and forms.
Under DAC7 we are obliged to verify whether the information about you that we collect is correct. We will verify the information you provide against publicly available sources (such as Chamber of Commerce information). If you provided us with copies of relevant documents, we may use them for the verification process. If we notice discrepancies, we may ask you to confirm the relevant information.
What will happen with my data and how long will it be stored?
The additional data we collect for DAC7 purposes will be treated with the utmost confidentiality and used by us solely for the purpose of complying with our DAC7 requirements. We will use the data to verify information about your business, to meet our tax, legal and audit obligations. We will keep it for as long as we need it for those purposes and in accordance with our record and data retention policy. If any part of the information you provide is considered personal data related to you as an individual, you can find out more information on how we use such personal data in our RB Global Privacy Policy.
What if I do not provide the required information?
If RB Global misses some of your information, we will require you to provide the required information. RB Global will send emails and/or forms and give you sufficient time to provide the required information. If you decide not to provide the required information despite our reminders, we are required by law to suspend your account and our payouts to you until you provide the required information. In some cases, we may ultimately be required to close your RB Global account. After the information is provided, you will then have your payouts unfrozen and/or have the ability to transact on the RB Global platforms again.
If I close my RB Global account(s) now, will my information still be shared?
If you are in scope for DAC7 and transacted as a seller we are obligated to report. If you deactivated your account in advance of 2023, your details will not be reportable.
Will I be informed of what is reported under DAC7 about me/my company and who do I contact in case I have any further questions?
If you/your company as a seller is in scope to be reported for DAC7, around January of each year, you will be informed of such by us. If you missed this communication, please feel free to submit your request for information through the below contact details.
If after reading these FAQ's you have any further questions or you want to receive the information that was submitted to the relevant tax authorities, please contact DAC7@rbglobal.com.
