DAC7 is an EU directive that requires digital platform operators in the EU and UK (like certain booking platforms) to collect and report information about the income earned by sellers (hosts, property managers) using their platforms. This information is then shared between EU member state tax authorities. The goal of the directive is to ensure transparency and prevent tax evasion.
You are obligated by this regulation if you manage a property located in one of the EU countries and/or the UK. This article explains how to prepare your data in Guesty and how to submit it to the authorities.
How does DAC7 affect you
While Guesty doesn't have direct reporting obligations under DAC7, the directive indirectly impacts you in the following ways:
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Data collection by booking platforms: The booking platforms you connect to through Guesty (e.g., Airbnb, Booking.com) will likely need to collect additional information from you to comply with DAC7. This may include:
- Tax identification number (TIN) or equivalent
- Date of birth or business registration number
- The address of each listed property
- Land registration number (if applicable)
- The total amount paid or credited to you each quarter
- The number of rental days for each property for each quarter
- Fees, commissions, or taxes withheld by the platform
- Increased tax scrutiny: The information collected by booking platforms will be shared with tax authorities in the relevant EU member states and the UK. This means increased scrutiny of your rental income and tax compliance. Ensure your tax reporting is accurate and up-to-date.
- Potential requests from Guesty (indirectly): While Guesty isn't directly reporting, we may need to help facilitate the collection of certain data on behalf of the booking platforms you use. This could mean updates to our platform, allowing you to easily input and manage this information.
To be compliant with this directive:
- Collect and verify relevant information about your property owners.
- Submit annual reports. Some locations or user categories require more frequent reporting.
- Check for specific compliance deadlines for each EU member state. Similar reporting obligations apply in the UK.
Extract data from Guesty
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click the mode selector and select Operations mode.
- Click Reservations.
- Create a reservation report by adding the following columns. Use filters to include or exclude the necessary information.
- Listing’s address: The address of each property
- Number of nights: Total number of nights booked
- Total payout: Total reservation cost
- Total paid: Total reservation payment.
- Click Download CSV to download the report.
- In the top navigation bar, click the mode selector and select Setup mode.
- Click Billing and select Plan & billing info.
- From the “Company information” section, copy your “VAT or company tax ID”.
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click the More and select Reservations.
- Create a reservation report by adding the following columns. Use filters to include or exclude the necessary information.
- Listing: The listing name
- Number of nights: Total number of nights booked
- Total payout: Total reservation cost
- Total paid: Total reservation payment.
- Click Download CSV to download the report.
- In the top navigation bar, click your profile icon, and select Account settings.
- In the left side panel, click Company information and copy your “VAT or TAX ID”
Prepare and submit your DAC7 data
Guesty provides data preparation tools but does not manage submission or compliance. After exporting your report from Guesty, follow these external compliance steps.
- Prepare the data: Calculate totals per property per quarter based on the data you downloaded from Guesty.
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Verify the following in your report:
- Owner details: Legal names, contact information, and tax IDs match government records.
- Financial accuracy: Reservation income, fees collected, and payout totals align with payment processor statements.
- Property records: Addresses and ownership percentages mirror official land registry documents.
- Format and complete your report: Download the format template required by your government gateway platform, and enter your data. While formats may differ by country, the most common requirement is an XML-type file. Consult with your tax authority or your tax advisor for specifics.
- Upload and submit: Each EU member state and the UK has a designated submission portal. For example, Government Gateway in the UK. Log into the portal and follow the steps to upload your XML or CSV file. Make sure you receive a confirmation once your file is processed.
- Keep records: Keep copies of all reports and submission receipts for future reference or audits.