DAC7 FAQ

What is DAC7?

The DAC7 Directive, also known as the "Directive on Administrative Cooperation", is a legal instrument designed to improve administrative cooperation related to taxation within the European Union. It is intended to combat tax evasion and improve transparency between EU member states.

DAC7 focuses in particular on the exchange of information related to income earned through digital platforms, such as holiday rental platforms like Holidu. To support proper taxation and reduce opportunities for tax evasion, DAC7 requires holiday rental platforms such as Holidu to collect and share certain financial information with tax authorities about the hosts and properties booked through their system.

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 holiday rental platforms — is declared to tax authorities. This helps prevent tax evasion and supports fair taxation of income earned through such platforms.

More information regarding DAC7 is available on the website of the German Tax Agency.

Does Holidu report data to tax authorities?

Yes. As a company based in Germany, Holidu submits the DAC7 declaration to the German Tax Office (Bundeszentralamt für Steuern). The German Tax Office is then responsible for forwarding this data to the tax authorities of the relevant EU Member State(s).

What information must Holidu report under DAC7?

Under DAC7, Holidu must report the following details:

Per host:

• Identification information (full name or company name, date of birth if individual, address, Taxpayer Identification Number, and company registration number if applicable)

Per property:

• Complete property address
• Total payments received
• Number of bookings
• Total commissions (including VAT)
• Any applicable taxes

Does Holidu report information from all bookings?

Yes — Holidu is required to do this under DAC7. The data we report includes the revenues earned from all confirmed bookings, along with property-specific details such as total payments, number of bookings, commissions, and taxes. This information is submitted to the German Tax Office, which then shares it with the relevant EU Member State authorities.

Do I need to make a DAC7 declaration as a host?

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, you may need to make a declaration under DAC7. Please consult your tax advisor for further information.

Does DAC7 affect my income tax declaration?

DAC7 does not impact your income tax declaration, and you still need to declare your income as you normally would. Please consult your tax advisor for further information regarding income tax declarations.

Does DAC7 apply if my property is in the EU but I am not an EU resident?

Yes. DAC7 applies to all properties located within EU territory, regardless of the host's residency status.

What information does Holidu need for the DAC7 declaration?

To make the declaration, we need:

1. Your Taxpayer Identification Number (TIN)
2. If you are registered as a company, your Commercial Registration Number

Where can I find my Taxpayer Identification Number?

Your Taxpayer Identification Number (TIN) can be found in different documents depending on your country. You can find more information by visiting the TIN country guide.

How do I enter my TIN in my Holidu account?

To add your Tax Identification Number (TIN), follow these steps:

1. Log in to your Holidu account
2. Click the menu in the upper right-hand corner and select "Account"
3. Scroll down to "Personal information"
4. Click edit on "Billing information"
5. Verify that the field "Tax identification number" is empty, then add your TIN, select the country, and save the changes

If you cannot see this option, you may need to mark the question "Do you have a valid EU VAT number?" as "No" (if you are not registered for VAT reverse).

Is it mandatory to enter my TIN?

Yes, this is mandatory. Holidu needs this information in order to make the declaration under DAC7.

Why was my TIN not accepted?

Our system checks the format of the ID number you have entered. If it is not accepted, the number you provided may be invalid. Please verify the data and try again. Ensure you have entered the correct TIN format for your country.

I manage a property but am not the owner. What information should I provide?

If you are responsible for declaring income and taxes for the property, please include your data for the declaration.

I am registered as a company. How will my data be reported?

If you are registered as a company, have indicated so in your Holidu account, and have provided your company ID number, we will report the data under the company name. Otherwise, we will report it under the individual's name.

Do I need to provide additional information if I am registered as a company?

Yes, hosts registered as a company also need to provide their business/commercial registration number.

I changed from company to individual registration. How do I update this?

If you were previously registered as a company but this is no longer the case, please contact your Account Manager, who will help you change the status of your account. A migration may be needed. Once this is done, you can follow the guidance in this FAQ to provide your correct DAC7 data.

What are the penalties for not providing DAC7 information?

If hosts fail to provide the required information, Holidu is required by DAC7 to freeze all future payouts until the information is provided. Providing your information promptly ensures continued access to your earnings.

What should I do if my information changes?

If your data changes, please update it immediately in your Holidu account. You can find details on how to do so by following the instructions outlined in this FAQ.

Does DAC7 apply to boat properties?

Yes — if your property is a boat, Holidu also needs to make a DAC7 declaration for your bookings.

Why is Holidu legally required to collect this data?

Holidu is required by law to collect and report this data under the DAC7 Directive. This is a legal obligation designed to combat tax evasion and improve tax transparency across the European Union.

Why is Holidu sharing my personal information with tax authorities?

Holidu has a legal obligation to do this under the DAC7 Directive. Sharing this information with tax authorities helps ensure fair taxation and combats tax evasion across EU member states.

Will my data still be reported if I deactivate my account?

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 other purposes?

Holidu will only use your information where we have a legal obligation to do so. Your tax information will not be used for any other purpose beyond DAC7 reporting requirements.