DAC7 is an EU directive aimed at improving cooperation between tax authorities in EU member states, particularly by gaining insight into income from sellers via digital platforms. Its objective is to simplify tax collection by local tax authorities.
As an auction platform, Troostwijk Auctions, Vavato and Surplex are obligated to report seller data to the Dutch Tax and Customs Administration. This data will then be shared with other tax authorities within the EU through the Tax and Customs Administration.
We've gathered answers to some frequently asked questions to help you learn more about DAC7 and how it impacts your data.
Does DAC7 lead to changes in the calculation of taxes?
No, DAC7 doesn't change the way we calculate and process taxes. The local tax authority will use the information reported to check tax returns and pre-fill parts of returns based on the information received.
What does DAC7 mean for the registration of sellers on our auction platform?
DAC7-related information for sellers on our auction platform is collected during the seller's onboarding process on our auction platform.
Is DAC7 a one-time or ongoing obligation?
From 1 January 2023, DAC7 is an annual reporting obligation. The data collected must be reported to the local tax authorities by 31 January the following calendar year.
What data do we report?
The DAC7 report includes all sellers who have organized and completed auctions on the our auction platform.
What is a TIN number and a Permanent Establishment?
A TIN number (Tax Identification Number) is a unique number used to identify a company for tax registration purposes. The format or layout of the TIN number varies from country to country. You can contact your accountant or tax advisor to find out your TIN.
In the context of DAC7, a permanent establishment in another EU country refers to a local legal entity registered in another EU country, which is affiliated with the same company or group of companies. We are required to obtain the Tax Identification Number (TIN) of each permanent establishment.
More information can be found here.
How can I provide the necessary information?
Your contact will contact you if any DAC7-related information is missing in our system.
How can I change my data, if I need to?
You'll receive a message from us in your seller account on our auction platform at the beginning of January about the DAC7 information that we report to the Tax and Customs Administration. In case you believe the information needs to be corrected, please reach out to your regular contact.
Do you share my data and if so, with whom?
We are required to provide information about our sellers and the transactions they conduct to the Dutch Tax and Customs Administration. This information is then shared with tax authorities in other EU countries.
I don't want to share my data
DAC7 is a legal obligation, requiring us to collect DAC7-related information from its sellers.
What if data is submitted after the deadline?
As soon as we receive and process the requested data, it will be included in the next report submitted to the Dutch Tax and Customs Administration.
What does the data in the 'Financial Statement' tab mean?
- ‘Considerations & Taxes’ refers to the total value of the highest bids on items sold or allocated and paid for during the first quarter, including the legally required Value Added Tax (VAT).
- 'Number of Activities Q1' represents the count of auctions that were concluded within the first quarter, with proceeds settled by Troostwijk to the seller during that period.
- 'Fees Q1' represents the total amount of commissions and deductions incurred during the first quarter. This includes the following items:
- Auction fee
- BPM
- Percentage commission
- Corrections
- Buyer kickback
- No show penalties
- Additional costs
- Additional costs commission
- Buyer premium service
- Fixed commissions
- Taxes Q1
- The taxes (VAT) on the above fees
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