EU Sellers - The DAC7 Directive
DAC7 is a new EU Directive (EU 2021/514) and its application means digital platforms (including online auction houses) are required by law to collect, verify and report data on sellers to EU tax authorities.
If you reside in an EU member state and sell 30 or more bottles within a single calendar year there will be a requirement to report your data to EU tax authorities, similarly if your sales exceed EUR 2000 (excluding fees and commission) in a single calendar year there will be a requirement to report your data to EU tax authorities.
Sellers who sell less than 30 bottles in a single calendar year and whose sales do not exceed EUR 2000 will not be reported.
If you meet the DAC7 thresholds in a calendar year you will receive an email and be prompted to supply the following information in your account:
1. First and last name
2. Residency address
3. Tax identification number (TIN) or place and country of birth, if you don’t have a TIN
4. Date of birth
1. Legal company name
2. Registered business address
3. Tax identification number (TIN)
4. Value added tax (VAT) number
5. Business registration number
6. Existence of a permanent establishment (PE) in the EU
Given the UK is no longer an EU member state Scotch Whisky Auctions will be reporting all relevant DAC7 data to the Irish tax authorities until the 31st of January 2025 who will cross check the data against their records and share with sellers’ relevant member state. From January 2025 all data reporting will be made to UK HMRC.
We are obligated to report to the tax authorities by 31st January 2024 EU Sellers who registered with us in 2023 with sales over EUR 2000 or 30 lots. For sellers who registered with us before 1 January 2023 there is additional time allowed, we are obligated to report on sales above threshold for the 2024 calendar year by 31 January 2025.
We will also provide you with the data submitted to HMRC in an annual report to assist you in your tax self-assessment.
All data will be securely stored within your MySWA account and will be processed by us strictly as required and only for compliance and to fulfil our legal obligations. You can view our full Privacy Notice here.
Please note this isn’t a change in what is taxable and will not necessarily increase your tax obligations but the change in how this data is being collected and reported will ultimately result in greater visibility for tax authorities concerning online transactions through digital platforms. It continues to be sellers' responsibility to declare and pay any taxes due and you should consult with your relevant tax authority if you have questions on your tax position.
If you do not supply requested information this may result in delays and withholding of payment. We are required to collect information to comply with our legal obligations.