DAC7 — what we report and when

DAC7 is an EU directive that requires online platforms to report seller transaction data to the tax authority of the seller's country of residence. It applies to both private and business sellers above certain thresholds. It has been in force since 1 January 2023.

The thresholds

The platform must report a seller for a given calendar year if either of these is true:

• 30 or more sales in the year, or
• €2,000 or more in total turnover from sales in the year

There is no minimum on the size of a single sale. A seller with 35 sales averaging €30 (= €1,050 turnover) is reported because they crossed the 30-sales threshold. A seller with 5 sales averaging €500 (= €2,500 turnover) is reported because they crossed the €2,000 threshold.

What gets reported

For each reported seller, in each calendar quarter:

• Identity — name, address, country of tax residence, tax identifier (Steuernummer / USt-IdNr.)
• Bank account — the IBAN or similar identifier where you receive payments, when known. For Path B (direct seller payment) we do not know this; for Path A (VOD Records direct sales) the relevant account is ours, not the seller's
• Aggregated transaction data — number of sales, total turnover, fees if any

The platform submits the report annually to the German Federal Central Tax Office (BZSt), which then forwards the relevant parts to other EU member states' tax authorities.

When the report goes out

• For calendar year 2026 → report due 31 January 2027
• For 2027 → due 31 January 2028
• And so on

We share with each affected seller a copy of the data we're reporting before submission, so you can check it and flag anything wrong.

What you see in your dashboard

At /account/seller-tax, the DAC7 card shows your live progress against the thresholds:

• Number of sales this year (count of completed transactions)
• Total turnover this year (sum of sale prices)
• Estimated proximity to each threshold (e.g., "23 of 30 sales — 7 to go" or "€1,680 of €2,000 — €320 to go")

This lets you see in real time whether you're heading toward being reportable. The number is not legal certainty — it's the platform's view of your activity — but it's a good early-warning signal.

Does DAC7 mean I pay more tax?

DAC7 itself does not change what tax you owe. It only reports activity to the tax authorities, who already had the legal right to ask for that data — DAC7 just makes the flow systematic.

If you were already declaring sales income correctly (whether as private hobby income or business income), DAC7 does not change your tax bill. If you were not declaring it, DAC7 may bring it to the tax office's attention.

DAC7 vs. invoicing

DAC7 is data submission to the tax authority. It is not an invoice. Invoicing is a separate obligation: business sellers must issue invoices to buyers (see Who issues the invoice). Private sellers do not issue invoices regardless of DAC7.

If you cross the thresholds

We will contact you with the data being reported, before submission. Most sellers who cross will want to consider whether their activity has crossed from private into business under German tax law — see Private vs. business. That is a separate decision; DAC7 reporting is independent of seller classification.

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This is general information, not legal or tax advice. The exact application of DAC7 to your situation depends on your country of tax residence and your circumstances. Consult a Steuerberater (tax advisor) for binding guidance.