DAC7 FAQ

What is DAC7?

DAC7, 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 aims to combat tax evasion and improve transparency between EU member states by requiring digital platforms, including holiday rental platforms like Holidu, to collect and share certain financial information with tax authorities about hosts and their properties.

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. For more detailed information regarding DAC7, you can visit the official website of the German Federal Ministry of Finance.

Does Holidu report data regarding my properties and bookings directly 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) where your properties are located or where you are registered.

What information is Holidu required to report under DAC7?

Under DAC7, Holidu must report specific financial and identification information for each host and their properties.

Per host, Holidu reports:

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

Per property, Holidu reports:

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

Does Holidu report information from all bookings to the tax office?

Yes. Holidu is required to report data from all confirmed bookings under DAC7. The data 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 need to make a declaration under DAC7 as a host?

Whether you need to make a declaration under DAC7 depends on your legal relationship with the property and whether you are classified as an intermediary. 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 about your specific situation.

Does DAC7 affect my income tax declaration?

No. DAC7 does not impact your income tax declaration, and you still need to declare your income as you normally would. DAC7 reporting is separate from your regular income tax obligations. Please consult your tax advisor for further information regarding income tax declarations and your specific tax responsibilities.

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

Yes. DAC7 applies to all properties located within EU territory, regardless of where the host is resident. If your property is in any EU member state, the DAC7 reporting requirements apply.

What information does Holidu need from me to make the DAC7 declaration?

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

• Your Taxpayer Identification Number (TIN)
• 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. To find your TIN, visit the European Commission's TIN lookup tool, which provides country-specific guidance on locating your TIN.

How do I enter my TIN in my Holidu account?

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

1. Log in to your Holidu account
2. Click the menu icon in the top right corner and select "Account"
3. Scroll down to "Personal information"
4. Click edit next to "Billing information"
5. Check that the "Tax identification number" field is empty
6. Enter your TIN, select the country, and save your changes

Note: If you cannot see this field, 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. Providing your TIN is mandatory. Holidu requires this information in order to make the declaration under DAC7. If you fail to provide the required information, Holidu is required by DAC7 to freeze all future payouts until the information is provided.

Why has my TIN been rejected by the system?

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

I am a property administrator responsible for tax declarations. Whose details should I provide?

If you are responsible for declaring the property's income to the Tax Office under your name, you should provide your details for the DAC7 declaration, not the property owner's details. This ensures that the reported information aligns with your tax obligations.

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

If you are registered as a company in your Holidu account and have provided your company ID number, Holidu will report the DAC7 data under your company name. If you have not indicated company registration, the data will be reported under your individual name. Ensure your account settings accurately reflect your business structure.

I am registered as a company. What additional information do I need to provide?

Yes. If you are registered as a company, you must provide your business or commercial registration number in addition to your TIN. This information is required for the DAC7 declaration.

I was previously registered as a company, but this is no longer the case. How can I change this in my account?

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

What are the penalties for not providing required 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. To avoid payment interruptions, please ensure all your DAC7 data is complete and accurate in your account.

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

If your personal information, TIN, company registration number, or any other data changes, please update it immediately in your Holidu account. You can update this information by following the steps outlined in this FAQ under the section "How do I enter my TIN in my Holidu account?" Updated information ensures accurate reporting to tax authorities.

My property is a boat. Do DAC7 reporting requirements apply?

Yes. If your property is a boat, DAC7 reporting requirements apply in the same way as they do for traditional properties. Holidu is required to make a DAC7 declaration for all bookings made through the platform, including those for boats.

Why is Holidu required to collect and share this information?

Holidu is required by law to collect and share this information under the DAC7 Directive. This legal obligation ensures that tax authorities have the information they need to combat tax evasion and promote fair taxation across the European Union.

Why is Holidu sharing my personal information with tax authorities?

Holidu has a legal obligation to share your information with tax authorities under the DAC7 Directive. This requirement is in place to strengthen tax transparency, prevent tax evasion, and ensure fair taxation of income earned through digital platforms.

If I deactivate my Holidu account, will my data still be shared with tax authorities?

Yes. Holidu is required to report data for all bookings made through the platform, regardless of whether your account is currently active. Past booking data will be included in DAC7 declarations to tax authorities.

Will Holidu use my tax information for any other purposes?

No. Holidu will only use your information where there is a legal obligation to do so, such as under the DAC7 Directive. Your tax information will not be used for any other purpose, including marketing or other business activities. Your data is handled strictly in accordance with data protection regulations and legal requirements.