DAC7 – UK rules explained
The first reporting period for Platform operators in the UK is the year 2024. UK introduced DAC7 reporting one year later than EU (DAC7).
Who must register and report for DAC7 in the UK?
Any online platform that facilitates sales or exchange of goods or services. Even if it is excluded Platform.
Excluded Platform operators
Two types of platforms might receive the status of excluded:
- A platform that doesn’t transfer any money to sellers/vendors;
- There are no reported sellers.
For example, if a platform has sellers from Brazil and Brazil is not a country participating in the exchange of information, this platform can apply for excluded status.
There is no revenue threshold for the registration of Platform operators in the UK.
DAC7 registration of platform operators
There is no specific deadline for registration, but a Platform needs to obtain a registration number to be able to send reports or notifications.
Types of activities that must be reported for DAC7
- Sale of goods;
- Sale of professional services;
- Rental of commercial and residential property;
- Rental of all types of vehicles.
Activities are the same as for DAC7 EU and that means that if EU businesses are already registered for DAC7 in the EU they don’t need to register in the UK as soon as the UK and EU have a mutual agreement and will send info to the UK tax Authority about UK sellers.
There are three categories of excluded sellers:
- Small businesses that sell goods and have less than 30 transactions and a total value of less than 2000 euros (1700 pounds);
- Big property lenders with more than 2000 transactions per year;
- Businesses or individuals located outside of the EU and UK.
Deadlines for report DAC7 in the UK
- 31 December – notice claiming the exemption for Excluded platform operator;
- 31 December – sellers’ diligence;
- 31 January – deadline for reporting for Platform operator;
- 31 January – Send summary to sellers.
List of partner Jurisdictions
For now, these are EU countries. Later we will update the list of partner Jurisdiction. Partner Jurisdiction means that the UK-registered platform needs to report transactions for all sellers from partner Jurisdiction. This also means that a UK-registered platform doesn’t need to register in the EU to comply with DAC7 reporting obligations. But as soon as EU rules are in force one year earlier DAC7 returns for the year 2023 UK- Platform operators that have sellers in the EU need to register and report in the EU.