Platforms such as Vinted, Leboncoin or Airbnb have until January 31, 2024 to pass on the income of their users to taxes, if they exceed a certain amount during a calendar year.
This is a text that will change a lot of things for collaborative economy sites like Vinted, Etsy, Leboncoin and eBay, especially for individuals who sell their products or offer their accommodation there. The seventh revision of the European directive relating to administrative cooperation (known as “DAC 7”) establishes a system for collecting and verifying information by platforms, which must declare to the tax administration the income of individuals who generate turnover. Let’s take a closer look at this.
A mandatory system, which aims to monitor platforms and their users
The DAC 7 directive aims to improve cooperation between the tax services of the Member States of the European Union, which can more easily catch fraudsters, whether they are individuals or professionals. It has been modified numerous times in recent years, but the version we are talking about, in force since 2023, has demonstrated its full importance since Tuesday January 2, 2024.
Since Tuesday, the specialized online service dedicated to supporting DAC7 declarations has been open, and it will remain open for a month. The tax authorities indicate that any late filing may be punishable by a fine. The European Union, which is at the origin of the system, also benefits from the support of the Organization for Economic Cooperation and Development (OECD), all 38 members of which have applied this regulation since 2023.
These rules, which form what is called “DPI” (Digital platform information), pursue several goals: responding to the rapid growth of the digital economy; and help (incentivize, rather) taxpayers to comply with their tax obligations. But be careful, not all users who earn money through these platforms are affected.
Income thresholds set to be declared for taxes by the platforms
As you have understood, platforms are legally required to declare data relating to their users’ transactions for tax purposes. There is still a reporting threshold. This has been set by law at 2,000 euros or more and/or 30 finalized transactions. Sellers (individuals or professionals) of products, goods, services through pages, classified ads and others, who meet these conditions over a calendar year, will be subject to transmission of their data to the tax authorities.
Among the data transmitted to Public Finance, we find:
- first name, last name (or legal or commercial name for a company),
- the address,
- the tax identification number (or SIREN for a professional),
- the date of birth (or intra-community VAT number for a company),
- the address of the property, the land registration number and the number of rental days if it is a rental of an apartment for example.
Once the data has been collected, the platform transmits it to the tax administration. And this once a year from now on, as soon as the volume and/or value of your sales reach the thresholds set by the directive.
Among the platforms concerned, we find eBay, Etsy, Leboncoin, Vinted, Amazon, and even Airbnb, which for its part is a good student and has already been transmitting this information to the tax administration since 2019.
Sources: Clubic, European Union
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