DAC7 FAQ

What is DAC7?

DAC7, also known as the "Directive on Administrative Cooperation", is a legal instrument designed to improve administrative cooperation related to taxation within the European Union. It aims to combat tax evasion and improve transparency between EU member states. DAC7 focuses in particular on the exchange of information related to income earned through digital platforms, such as holiday rental platforms like Holidu.

What is the purpose of DAC7?

DAC7 aims to strengthen tax transparency and cooperation in the digital economy by ensuring that income from digital platforms — including holiday rental platforms — is declared to tax authorities. This helps prevent tax evasion and supports fair taxation of income earned through such platforms. More information regarding DAC7 is available on the website of the German Tax Agency, here.

How does DAC7 affect my property on Holidu?

To support proper taxation and reduce opportunities for tax evasion, DAC7 requires holiday rental platforms such as Holidu to collect and share certain financial information with tax authorities about the hosts and properties booked through their system. This means Holidu must report specific details about your bookings and income to the relevant tax authorities.

Does Holidu report data regarding my properties and bookings to tax authorities?

Yes. As a company based in Germany, Holidu submits the DAC7 declaration to the German Tax Office (Bundeszentralamt für Steuern). The German Tax Office is then responsible for forwarding this data to the tax authorities of the relevant EU Member State(s).

What information is Holidu required to report under DAC7?

Under DAC7, Holidu must report the following details:

Per host:

• Full name or company name
• Date of birth (if individual)
• Address
• Taxpayer Identification Number
• Company registration number (if applicable)

Per property:

• Complete property address
• Total payments received
• Number of bookings
• Total commissions (including VAT)
• Any applicable taxes

Does Holidu report information from all bookings?

Yes — Holidu is required to do this under DAC7. The data reported includes the revenues earned from all confirmed bookings, along with property-specific details such as total payments, number of bookings, commissions, and taxes. This information is submitted to the German Tax Office, which then shares it with the relevant EU Member State authorities.

Do I need to make a DAC7 declaration as a host?

This depends on your legal relationship with the property. Only platforms offering intermediary services are required to make a declaration under DAC7. If you are an intermediary, you may need to make a declaration under DAC7. Please consult your tax advisor for further information.

Does DAC7 affect my income tax declaration?

DAC7 does not impact your income tax declaration, and you still need to declare your income as you normally would. Please consult your tax advisor for further information regarding income tax declarations.

Does DAC7 apply if my property is in the EU but I am not an EU resident?

Yes. DAC7 applies to all properties located within EU territory, regardless of the host's residency status.

What information do I need to provide to Holidu for DAC7?

To make the DAC7 declaration, Holidu needs:

1. Your Taxpayer Identification Number (TIN)
2. If you are registered as a company, your Commercial Registration Number

Where can I find my Taxpayer Identification Number?

Your Taxpayer Identification Number (TIN) can be found in different documents depending on your country. You can find more information by visiting the official EU resource on finding your Taxpayer Identification Number.

How do I enter my TIN in my Holidu account?

To add your Taxpayer Identification Number (TIN), follow these steps:

1. Log in to your Holidu account
2. Click the menu icon in the top right-hand corner and select "Account"
3. Scroll down to "Personal information"
4. Click "Edit" on the "Billing information" section
5. Enter your TIN, select the country, and save the changes

If you cannot see this field, you might need to mark the question "Do you have a valid EU VAT number?" as "No" (if you are not registered for VAT reverse).

Is it mandatory to enter my TIN?

Yes, this is mandatory. Holidu needs this information to make the DAC7 declaration to the tax authorities.

Why has my TIN been rejected by the system?

Our system checks the format of the ID number you have entered. If it is not accepted, the number you provided is invalid or does not match the correct format for your country. Please verify the data and try again. If you continue to experience issues, consult your tax advisor or local tax authorities to confirm your correct TIN format.

I am an administrator managing the property. Whose details should I provide for DAC7?

If you are responsible for declaring income and taxes for the property, please include your data for the DAC7 declaration. This ensures that the correct taxpayer information is reported to the tax authorities.

I am registered as a company. How will Holidu report my DAC7 data?

If you are registered as a company, have indicated so in your Holidu account, and have provided your company ID number, Holidu will report the data under your company name. Otherwise, the data will be reported under the individual's name.

As a company-registered host, what additional information do I need to provide?

Yes, hosts registered as a company also need to provide their business or commercial registration number in addition to their Taxpayer Identification Number.

I changed my registration status from company to individual. How do I update this?

Please reach out to your Account Manager, who will help you change the status of your account. A migration may be needed to ensure your information is correctly updated. Once this is done, you can update your DAC7 data accordingly.

What are the penalties for not providing DAC7 information?

If hosts fail to provide the required DAC7 information, Holidu is required by law to freeze all future payouts until the information is provided. This is a mandatory compliance measure under the DAC7 Directive.

What should I do if my information changes?

If any of your personal or property information changes, please update it immediately in your Holidu account. You can follow the guidance in this FAQ regarding how to update your billing information and tax details.

Do DAC7 requirements apply to boat rentals?

Yes — if your property is a boat, Holidu also needs to make a DAC7 declaration for your bookings. Boat rentals are treated the same as other properties under DAC7.

Why is Holidu required to send this data to tax authorities?

Holidu is required by law to make this declaration under the DAC7 Directive, which is a legal instrument of the European Union designed to improve tax transparency and combat tax evasion across EU member states.

Why is Holidu sharing my personal information with tax authorities?

Holidu has a legal obligation to do this under the DAC7 Directive. This requirement applies to all digital platforms, including holiday rental platforms, to ensure proper tax reporting and transparency.

Will my data be shared if I deactivate my Holidu account?

Yes. Holidu is required to report data for all bookings made through the platform, regardless of whether the account is still active. Historical booking data must be reported to comply with DAC7 regulations.

Will Holidu use my tax information for other purposes?

No. Holidu will only use your information where there is a legal obligation to do so under DAC7. Your tax information will not be used for any other purpose.

Understanding Your Reporting Obligations

As a host on Holidu with properties in EU member states, understanding your DAC7 obligations is important for compliance. While Holidu handles the reporting to tax authorities, you remain responsible for accurately declaring your rental income through your own tax returns. Always consult with a tax professional or your local tax authority if you have specific questions about your individual tax reporting requirements or the correct format for your Taxpayer Identification Number.