Our forum members have been actively discussing the DAC7 EU law, which mandates online platforms to collect and verify the ID information of European sellers engaging in activities such as livestreaming, food delivery, ride-hailing, and online training. This information must be annually reported to local tax authorities, who will then share it with tax authorities across all EU countries.
Key points from the discussion include:
- Some members have shared their experiences and strategies for dealing with the new tax information requirements, including the challenges of setting up as a formal business entity and handling taxation in different EU countries.
- Concerns were raised about the significant portion of income taken by platforms and taxes, with some members contemplating returning to traditional employment or relocating to countries with more favorable tax regimes.
- Discussion on the impact of DAC7 on earnings, with suggestions to potentially increase prices to offset the higher tax burdens.
- Insights into specific country regulations, such as Portugal not yet requiring the provision of tax IDs and Cyprus offering tax incentives for relocating companies or high-earning models.
- Clarification on the income thresholds for reporting under DAC7, with platforms required to report models making over 2000 euros per year.
- Debate on how income is calculated across multiple platforms and the implications for models earning close to or below the reporting threshold.
- Explanations of how transactions are counted under DAC7, highlighting the potential for even small transactions or tips to trigger reporting requirements based on the number of transactions rather than just the total earnings.
Members have also expressed a need for clear communication from platforms regarding what will be reported and have shared advice on preparing for potential tax implications. The discussion underscores the importance of understanding and navigating the new DAC7 regulations for webcam models operating within the EU.