DAC7 information collection and reporting requirements

As a result of the Directive on Administrative Cooperation (DAC7) Faire is required to collect and report information about our EU and UK established brands to the Dutch tax authorities (DTA). Below you’ll find everything you need to know about DAC7.

What is DAC7?

DAC7 is legislation which requires digital platform companies to collect and annually report information relating to sellers (brands) operating on their digital platforms to the tax authority of the country where the digital platform company is based. Subsequently, that EU Member State is required to automatically exchange this information with the tax authority of the country in which the brand is a resident.

Due to this legal requirement, as a Dutch company, Faire B.V. (Faire’s European entity) is required to report information about our EU and UK established brands, both business entities and individuals, to the DTA. The DTA will then share this information with the tax authority in the country where the brand is resident.

The aim of DAC7 is to improve how information is shared between countries in Europe, and to increase transparency of revenue earned by brands through digital platforms. Ultimately, this law should simplify the collection of taxes by local tax authorities.

By providing us with accurate information on a timely basis, you will be helping to ensure that your own local tax authorities have all the information which they need in order to ensure efficient tax administration.

Who does DAC7 apply to?

If you are an EU or UK based brand and have been selling on Faire after January 1 2023, you are impacted by DAC7 requirements, unless you meet the definition of an excluded seller (having had fewer than 30 Faire orders during the year and received less than €2,000 for those orders would qualify you as an excluded seller.)

Who does DAC7 not apply to?

For the sale of goods, DAC7 doesn’t apply if your brand is based outside the EU or the UK. It also doesn’t apply if your brand is a governmental entity, a listed company, or an affiliate (holding more than 50% interest) of a listed company.

In addition, your brand is excluded from DAC7 reporting if it meets both of the following conditions during a calendar year (from January 1 to December 31):

• Fewer than 30 orders fulfilled on Faire

• Less than €2,000 in total earnings from those orders

If you have multiple brand accounts, we’ll combine orders and earnings across all accounts to determine whether you meet this threshold.

Example brand performance by year:

In this example, the brand only qualifies as an excluded seller in the year where both conditions were met. For all other years shown, DAC7 reporting requirements would apply.

When did DAC7 reporting requirements start?

DAC7 reporting requirements took effect on January 1, 2023, and apply on an annual basis. Each year, digital platforms must collect and report taxpayer information by January 31 for activity during the previous calendar year.

If you’ve been selling on Faire and don’t qualify as an excluded seller, we’re required to report your information to the Dutch tax authority (DTA). To meet this timeline, we ask that you submit your DAC7 information by January 7 each year.

What tax information is required to be reported?

Faire is required to share the following information with the DTA. Please note that the exact information we are required to collect and share varies slightly, depending on whether you are a natural person, or a legal entity;

In addition to the information listed above, Faire is also required to share transaction related information with the DTA, to learn more, visit What financial and transactional information will Faire be reporting?

What is the TIN for my country?

Your Tax Identification Number (TIN) is used for income tax purposes and may be different from your VAT number. The required TIN format depends on your country and whether you're registering as an individual or a legal entity.

To find the correct TIN for your business type and country, refer to the OECD’s TIN guidelines. This resource explicitly indicates what your TIN number should be if your business is an Individual or a Legal entity, and where to find it.

We’ve also included a few common formats below to help guide you. If you’re unsure which number to use, we recommend checking with your local tax advisor.

How do I provide my information?

In advance of Faire's reporting deadline of January 31, we ask you to provide certain additional information, which has not already been captured as part of the standard onboarding and KYC procedures you completed when joining Faire.

If you are required to submit information for DAC7 compliance, you will see a banner surfaced in your Faire portal. Please note that if you are using a team account, only the account owner is able to see and action on the DAC7 information submission.

1. On the banner, select Submit, by the January 7 deadline
2. Depending on your business type, select Legal entity or Individual. These two options will populate different reporting requirements
3. Fill in the information required and click submit.
4. Once submitted, your information will be under review. You can access the DAC7 form until January 7 by going to the Exports & Taxes tab.

To ensure the efficient sharing of information to your local tax authorities and to minimize the risk of errors, please take the time to submit your information as soon as possible.

If I don’t provide my taxpayer information, will Faire still share my information?

Yes. We will share all relevant information, to the extent required by DAC7. If you fail to provide us with the required information, we may need to take enforcement measures of freezing your payouts and/or blocking your ability to accept new orders on Faire.

If I’ve made an error in adding my taxpayer information, can the information be changed?

If you notice an error in your DAC7 submission before the January 31 reporting deadline, reach out to Support and request to speak with a specialist. While we can’t guarantee we’ll be able to make changes after submission, we’ll do our best to help.

Can I access the information Faire declared to tax authorities?

Yes. Once we have validated your tax information submission and prepared our declaration for your brand, we will make the reported information available in your brand portal and notify you by email. You will be able to download a file containing the details Faire has submitted to the DTA for your records.

Please note that, if you are using a team account, only users with owner level permissions will be able to download this information for privacy and security reasons.

Can my tax authority review income tax returns for past years?

The rules applying to the review of prior tax returns vary by country. Consult with your local tax advisor for further information.

If I deactivate my Faire account now, will my information be shared?

Yes. If your business fell under DAC7 requirements for a calendar year, then Faire will share all relevant information, to the extent required by DAC7. We are still legally required to share your information with the DTA, regardless of the status of your Faire account.

Why are you collecting my information?

DAC7 places a legal obligation on Faire as a digital platform to share the information of EU and UK-established brands. We are collecting your information in order to allow us to comply with our legal obligations under DAC7. For more information about how we process your information, please see our Privacy Policy.

Who will Faire share my information with?

Faire will share your information with the DTA (Dutch tax authorities) for DAC7 compliance purposes. The DTA will then share this information with the tax authorities in the country where you are tax resident.

What financial and transactional information will Faire be reporting?

In addition to the tax information you’ve declared, Faire is required to share financial and transactional information with the DTA, to report on your activity on the Faire platform. We won’t be requesting this information from you, as we already have access to it on your Faire account.

This includes:

• Bank account details:
  • Bank account identifier (We appreciate that your default payout account might have changed, or be different to what we declare. However, at this time, only one account number is required to be shared as part of DAC7 requirements. Please note that we will provide the full bank account number to the tax authorities, as this is required by DAC7 legislation.)
  • Account Holder Name: This is your brand's bank account owner's name, based on our records)
• Currency Code Consideration: This is the currency code that matches your payouts on Faire.
• Consideration per quarter of the calendar year: This is your payout amount (per quarter of the calendar year), minus any fees (e.g. shipping deductions), commission (our 25%/15% commission) or taxes withheld by Faire. Cancellations and returns are deducted from this number.
• Number of Activities per quarter of the calendar year: This is the number of orders you shipped per quarter. Cancellations and returns are deducted from this number.
• Currency Code Fees: This is the currency code for the fees charged by Faire.
• Fees per quarter of the calendar year: This is the amount of fees and commissions withheld by Faire, per quarter, for your business.
• Currency Code Taxes: This is the currency code for the taxes withheld by Faire from your payouts.
• Taxes per quarter of the calendar year: This amount is the total amount of tax withheld by Faire from your payouts per quarter.

What if my company information changed within the year?

If your business registration changed during the reportable year, you’ll only be able to enter details for one business in the DAC7 form.

For example: if you started the year as an individual and later registered as a legal entity, complete the form using the information as of the end of year. Then contact our support team and provide:

• The previous company information
• The effective date of the change

If you contact us after January 7, we can’t guarantee the update will be reflected in the DAC7 report but we'll do our best to help.

Can I edit my submitted information?

Your DAC7 form can be edited after you submit the form. However, the form will be locked after on January 7th and you won't be able to make changes after that date.

If you need to make changes and can’t access the form, contact our support team and provide:

• The specific changes you need to make
• Any updated documentation, if applicable

If you contact us after January 7, we can’t guarantee the update will be reflected in the DAC7 report but we'll do our best to help.