DAC7 for platforms

DAC7 reporting, off your plate.

If your platform pays creators or freelancers, the EU expects you to report what they earn. Pay them through Abillio instead, and Abillio handles the payouts and the DAC7 reporting.

Talk to us about your platform
What DAC7 is

An EU rule that makes platforms report what their sellers earn.

DAC7 (Council Directive (EU) 2021/514) applies to digital platforms that connect sellers with the people who pay them. Personal services, the work creators and freelancers do, are in scope.

No minimum

For personal services there is no threshold. Every seller counts, however little they earn.

Every year

Platforms report the previous year's income by 31 January. The first reports were due in January 2024.

Data in use

Tax authorities now match platform reports against tax returns and pre-fill returns with platform income.

Fines

Each EU country sets its own penalties for platforms that don't report, from tens of thousands of euros to over a million.

How Abillio handles it

You pay one company. We take care of the people.

When your platform pays Abillio, a legal entity, you are no longer paying individuals. DAC7 reporting on those payouts comes off your plate.

1

Creators sign up once

They verify their identity with Abillio and don't need to open a company.

2

You pay Abillio

One payment from your platform covers everyone you owe for the period.

3

We invoice and pay out

Abillio issues an invoice in each creator's name and pays them out.

4

We handle DAC7

Abillio handles the reporting, so your platform doesn't build or file it.

Creators in Latvia and Estonia

Abillio pays their taxes, so no DAC7 report is needed for them.

Creators in other EU countries

Abillio files the DAC7 report with the Estonian tax authority, which passes the data on to each person's EU country of tax residence.

What changes for your team

Less to build, less to file.

Paying people directlyPaying through Abillio
Seller data and checksYou collect and verify itAbillio verifies each creator
InvoicesChase each person for oneIssued in the creator's name
DAC7 reportYou build and file itAbillio handles it
PayoutsOne transfer per personOne payment to Abillio

Abillio is not an Employer of Record. Creators stay independent.

Questions

DAC7, answered.

DAC7 is the EU directive on platform reporting (Council Directive (EU) 2021/514). Digital platforms have to report the income that sellers earn through them, including people who provide personal services, to the tax authorities once a year. The first reports were due on 31 January 2024.

Read the full DAC7 guide on our blog

See how DAC7 would work for your platform.

A 30-minute call. Tell us how you pay creators today, and we'll show you what comes off your plate.

Book a call