DAC7 in practice (2025): What platforms report — and how online sellers are affected

Introduction: Transparency becomes the new standard

Since Council Directive (EU) 2021/514 — widely known as DAC7 — entered into force, digital platforms have become part of the EU’s tax-reporting framework.
The directive requires platform operators to collect and report detailed seller information each year to their national tax authority, which then automatically exchanges the data with all other EU Member States.

In Germany, DAC7 is implemented through the Plattformen-Steuertransparenzgesetz (PStTG), with the Federal Central Tax Office (BZSt) as the competent authority. The first reporting window (for 2023) ran from 1 to 31 January 2024.
The rules apply EU-wide from 1 January 2023 and are built on the OECD Model Rules for Reporting by Platform Operators, providing the blueprint for uniform global transparency.

Who must report?

All digital platform operators enabling users to perform relevant activities fall within scope. This includes:

Sale of goods via online marketplaces
Rental of immovable property (homes, vehicles, rooms)
Personal services (freelance work, repairs, tutoring, household help)
Transport services (ride-sharing, delivery platforms)

Both EU-established and non-EU operators are covered. Non-EU operators that facilitate transactions for EU-based sellers or buyers must register in a single Member State and report there (“one-stop registration”).
Platforms used solely for internal corporate purposes or selling only the operator’s own goods are excluded.

What information must be reported?

Each year, platform operators submit a structured dataset covering identification, transaction and financial details:

Seller identification: full name, address, TIN (tax identification number), VAT ID, date of birth or company registration number.
Financial data: annual consideration paid, fees, taxes, refunds and currency.
Transactional data: number and value of transactions, bank account/IBAN, and, for rentals, property information.
Verification data: outcome of the operator’s KYC/due-diligence review.

These records are transmitted electronically in XML via the DIP (Digitaler Posteingang) interface provided by the BZSt or the relevant national authority.

Deadlines and process

The reporting period equals the calendar year, and all data must be submitted by 31 January of the following year.
For example, transactions from 2024 must be filed by 31 January 2025.

The German BMF defines the official XML data schema for DAC7/PStTG filings (published 15 November 2023).
After submission, the BZSt performs automated validation. Any errors or missing data must be corrected within 60 days. Once validated, the dataset is forwarded via the EU’s CCN/CSI network to all relevant Member States.

Due-diligence and KYC obligations

Before reporting, platforms must conduct due-diligence checks on their sellers.
They must verify identity, address, and tax residence, collect TIN/VAT ID, and document all verification steps.
The verified records must be retained for ten years. Sellers whose data cannot be verified are reported as “undocumented sellers”, triggering additional review obligations.

This due-diligence framework is directly aligned with the OECD Model Rules, ensuring global consistency across jurisdictions.

Frequent compliance challenges

In practice, many operators struggle with data integrity and workflow automation.
Common issues include missing or invalid TINs, duplicate seller profiles, incorrect currency or fee data, and inconsistent KYC evidence.
A robust compliance process therefore links platform data, payment reports, and accounting records in a continuous reconciliation cycle.
Firms that manage this alignment early will face fewer questions from tax authorities once cross-checks begin.

Impact on online sellers

Sellers are indirectly affected because the data reported by platforms can be matched against tax returns.
If declared income differs from platform data, tax offices can issue information requests or adjust assessments.
Compliant sellers, however, benefit from a level playing field — DAC7 reduces unfair competition from undeclared income.

Outlook: Automation and cooperation

DAC7 introduces one of the first truly pan-European digital tax datasets.
While compliance may seem demanding at first, it moves the EU closer to real-time, data-driven taxation.
Platforms that integrate KYC, payment data and accounting early will save time in the long run and strengthen trust with both sellers and authorities.

Official sources

Directive (EU) 2021/514 (DAC7) — Official Journal L 104/1, 25 Mar 2021 (EUR-Lex).
European Commission — DAC7 overview page and FAQs for EU & non-EU operators.
BZSt (Germany) — DAC7 Portal (PStTG): procedure, XML/DIP interface, deadlines.
BMF (Germany) — Official data schema for DAC7 filings, published 15 Nov 2023.
OECD — “Model Rules for Reporting by Platform Operators” (technical basis of DAC7).

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