DAC7 FAQ

What is DAC7?

DAC7, also known as the "Directive on Administrative Cooperation," is a legal framework designed to improve administrative cooperation related to taxation within the European Union. It aims to strengthen tax transparency and cooperation in the digital economy by ensuring that income from digital platforms is declared to tax authorities.

DAC7 particularly focuses on the exchange of information related to income earned through digital platforms, such as vacation rental intermediaries like Holidu. This directive helps prevent tax evasion and ensure fair taxation of income earned through such platforms.

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 is declared to tax authorities, including vacation rental platforms. This helps prevent tax evasion and ensures fair taxation of income earned through such platforms.

For more detailed information regarding DAC7, please visit the German Tax Agency website.

Does Holidu report data regarding my properties and bookings directly to the Tax Authorities of EU Member States?

Yes, as a company based in Germany, Holidu submits the DAC7 declaration to the German Tax Office (Bundeszentralamt für Steuern). After this, the German Tax Office is responsible for forwarding this data to the Tax Authorities of the relevant EU Member State or States.

What information is Holidu required to report to the Tax Office under DAC7?

Under DAC7, Holidu must report specific details about hosts and their properties to ensure tax compliance across the EU.

Per host, we report:

• Full name or company name
• Date of birth (if individual)
• Address
• Taxpayer Identification Number
• Company registration number (if applicable)

Per property, we report:

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

Do you pass on information from all bookings to the Tax Office?

Yes, Holidu is required to report data for all confirmed bookings under DAC7. The data we report includes revenues earned from all 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, as a Host, need to make a declaration under DAC7?

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 this affect my income tax declaration?

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

My property is located in the EU, but I am not an EU resident. Does DAC7 apply to me?

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

What information does Holidu need in order to make the declaration under DAC7?

To make the declaration, Holidu needs the following information from you:

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

Where can I enter my TIN?

To add your Taxpayer Identification Number, follow these steps:

1. Log in to your Holidu account
2. Click the Holidu Logo in the top right-hand corner
3. Select "Account"
4. Scroll down to "Personal Information"
5. Click "Edit" on the "Billing Information" section
6. Mark "No" to the question "Do you have a valid EU VAT number?" (if you are not registered for VAT reverse)
7. Review that the field "Tax Identification Number" is empty and add your TIN, select your country, and save the changes

Where can I find my Taxpayer Identification Number?

Your Taxpayer Identification Number can be found in different documents depending on your country. You can find more information by visiting the European Commission TIN country lookup.

Is it mandatory to enter my TIN?

Yes, entering your TIN is mandatory. Holidu needs this information to make the declaration under DAC7. Without your TIN, we cannot complete the required tax reporting.

I have entered my TIN, but it has not been accepted. Why is this?

Our system checks the format of the ID number you have entered. If your TIN is not accepted, it means that you have entered an invalid number. Please check the data you have entered for accuracy and try again. If you continue to experience issues, verify the correct format of your TIN for your country.

I manage the property as an administrator, and I am responsible for declaring the property's income to the Tax Office under my name. Should I add my details as data for the DAC7 declaration or details of the actual property owner?

As you are responsible for declaring income and taxes for the property, please include your data for the DAC7 declaration. This ensures that the tax reporting aligns with your tax filing responsibilities.

I am registered as a company. Will Holidu report the DAC7 data under my personal name or my company's?

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

I am registered as a company. Do I need to provide any additional data?

Yes, hosts registered as a company also need to provide their business or commercial registration number in addition to their Taxpayer Identification Number. This information helps ensure accurate tax reporting at the corporate level.

I was previously registered as a company, but this is no longer the case. How can I change this in my Holidu account so that I can provide the correct information for DAC7?

Please reach out to your Account Manager, who will help you change the status of your account. A migration may be needed to update your registration status. Once this is completed, you can follow the guidance in this FAQ to provide your correct DAC7 data.

What should I do if my data changes in the future?

If your data changes, please update it immediately in your Holidu account. You can modify your information by following the steps outlined in the section "Where can I enter my TIN?" to ensure that your DAC7 declaration remains accurate.

My property is a boat. Do you still need my data for the DAC7 declaration?

Yes, if your property is a boat, Holidu also needs to make a DAC7 declaration for your bookings. Boats used for vacation rental purposes are included in the DAC7 reporting requirements.

What are the penalties for non-compliance with DAC7?

In the event that hosts fail to provide the required information, Holidu will be required by DAC7 to freeze all future payouts until such information is provided. This is a legal requirement to ensure compliance with the directive.

Holidu sent me a form asking that I fill in data regarding DAC7, but the link doesn't work.

The DAC7 form works on both mobile apps and desktop formats. Please make sure that you are using one of these to access the form. Unfortunately, the form is not available on a mobile browser, so please try accessing it through a desktop computer or the Holidu mobile app.

The form that Holidu sent shows a different name to the name of the account holder.

Please ensure that you are signed in with the correct email address, which matches the email address associated with your account. Once you have verified your login, you should see the correct information displayed in the form.

Will I get a confirmation when I submit all the information via the form?

No, you will not receive an automatic confirmation message after submitting your information. However, you can verify that your data has been successfully saved by logging into your Holidu account and checking your account details. If you see your information populated in your account settings, it has been successfully submitted.

The email that Holidu sent to me was in my name, however, I am registered as a company. Will you report data under my personal name or that of the company?

If you are registered as a company, have indicated this in your Holidu account, and have provided your company ID number, Holidu will report the data under your company's name. Otherwise, we will report it under the individual's name. Please ensure your company registration details are accurately reflected in your account.

Why does Holidu need to send this data to the tax authorities?

Holidu is required by law to make this declaration under the DAC7 Directive. This is a legal obligation to ensure tax transparency and cooperation across EU member states and to prevent tax evasion in the digital economy.

Why is Holidu sharing my personal information with the Tax Office?

Holidu has a legal obligation to share this information under the DAC7 Directive. This data sharing is required by EU law to ensure tax compliance and transparency in the vacation rental industry.

If I deactivate my Holidu account now, will my data still be shared?

Yes, Holidu is required to report data for all bookings made through the platform, regardless of whether the account is still active. DAC7 requires reporting of historical booking data, so deactivating your account does not exempt you from this requirement.

Will Holidu use my tax information for any other purposes?

Holidu will only use your information if there is a legal obligation to do so. Your tax information will not be used for any other purpose beyond DAC7 compliance and tax reporting requirements.