DAC7 tax requirements update

Digital platform data collection compliance

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Written by Deborah Deiana
Updated over a week ago

At Treatwell, our partners are a priority. That’s why we’re sharing everything we know about DAC7 and its impact on you, our professional hair, beauty, barber and wellness partners. This regulation marks a pivotal step in tax transparency, aiming to enhance how digital platforms like Treatwell operate. Let's dive into what this means for partners like you, and why it's crucial to comply.

Frequently Asked Questions (FAQs)

What is DAC7?

DAC7* simply refers to a new set of tax transparency rules mandated by the EU. It stipulates that digital platform operators like Treatwell collect, validate, and annually report specific partner information to the tax authorities of EU Member States. The aim is to enhance tax transparency and cooperation among EU nations.

*DAC7 is the 7th version of (or the 6th amendment to) the European Council Directive on Administrative Cooperation and Automatic Exchange of Information in the Field of Taxation.

Why is this happening?

The primary goal behind DAC7 is to improve transparency regarding transactions occurring on digital platforms, including Treatwell, and to encourage better tax collaboration among EU Member States.

Who does it apply to?

These requirements apply to all Treatwell partners, both newly onboarded and existing salons, barbers, and beauty service providers.

How does this impact you?

For your convenience, we aim to streamline and safeguard the process as much as possible:

  • New partners: All relevant information will be collected during our onboarding process.

  • Existing partners who joined in 2023 (excluding the United Kingdom, Ireland and Switzerland) Please complete identity verification by 17 January 2024.

  • Existing partners who joined before 2023 (including the United Kingdom, Ireland and Switzerland) Please complete identity verification by 17 January 2025.

What data will be shared?

In order to comply with DAC7, we will only share specific partner information securely with tax authorities, including details such as names, addresses, tax identification numbers, transaction data, and bank account information.

We will be reporting on:

  • 'Amount paid to seller' (having deducted TW Commission)

  • Order/Appointment count

  • Commission and taxes withheld by TW

  • Taxes-on commission (only for prepaid appointments)

Refer to the table provided in the appendix for a further list.

Is this a one-time obligation?

DAC7 requires annual reporting starting from 1 January 2023. Data from partners onboarded after this date will be reported by 31 January 2024. Partners onboarded before 2023 will have data reported by 31 January 2025, and annually thereafter. Of course, any changes in your details should be promptly reported to ensure accuracy.

Who handles this reporting?

As your digital platform partner, Treatwell is responsible for gathering and directly sharing the required information with the relevant tax authorities on an annual basis in a highly secure way.

How will Treatwell handle this data?

Rest assured, the information you provide will be handled confidentially, safely and solely for DAC7 compliance purposes. We'll retain it in accordance with our data retention policyand use it for tax, legal, and audit obligations only.

Appendix

  • Useful links:

  • Data requirement information

Sole Proprietors

Legal Entities

First and last name

Registered name

Address of residence

Address of the registered office

Platform user’s tax identification number

Platform user’s tax identification number

VAT identification number

VAT identification number

Date of birth

Business registration number

Bank account number where the platform user receives payments from Treatwell (IBAN)

Bank account number where the platform user receives payments from Treatwell (IBAN)

Where different from the name of the platform user, the name of the holder of the bank account which is paid into or credited, as well as any other financial identification details available for that account holder

Where different from the name of the platform user, the name of the holder of the bank account which is paid into or credited, as well as any other financial identification details available for that account holder

Member State of the European Union in which the platform user is resident.

Member State of the European Union in which the platform user is resident.

All fees, commissions or taxes withheld or charged by Treatwell as the platform operator in each quarter of the reporting period.

All fees, commissions or taxes withheld or charged by Treatwell as the platform operator in each quarter of the reporting period.

Total remuneration paid or credited in each quarter of the reporting period by Treatwell to the platform user.

Total remuneration paid or credited in each quarter of the reporting period by Treatwell to the platform user.

Number of relevant transactions for which the platform user was paid or credited in each quarter of the reporting period.

Number of relevant transactions for which the platform user was paid or credited in each quarter of the reporting period.

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