Following DAC7 compliance with Guesty

DAC7 is an EU directive requiring digital platform operators in the EU and UK to collect and report information about the income earned by sellers (hosts, property managers) using their platforms. This information is shared between EU member state tax authorities to ensure transparency and prevent tax evasion.

This regulation applies to you if you manage properties in the EU or the UK. This article explains how to prepare your data in Guesty and submit it to the authorities.

How DAC7 affects you

Guesty doesn't have direct reporting obligations under DAC7, but the directive impacts you in the following ways:

• Data collection by booking platforms: Connected booking platforms, such as Airbnb and Booking.com, collect additional information to comply with DAC7. This includes:
  • Tax identification number (TIN) or equivalent
  • Date of birth or business registration number
  • Address of each listed property
  • Land registration number (if applicable)
  • Total amount paid or credited each quarter
  • Number of rental days for each property per quarter
  • Fees, commissions, or taxes withheld by the platform
• Increased tax scrutiny: Booking platforms share collected information with tax authorities in the EU and the UK. Confirm your tax reporting is accurate and up to date.
• Potential requests from Guesty: Guesty may facilitate the collection of data on behalf of your booking platforms. We update our platform to help you manage this information.

To comply with this directive:

• Collect and verify property owner information.
• Submit annual reports. Specific locations or user categories may require more frequent reporting.
• Check specific compliance deadlines for each EU member state and the UK.

Extract data from Guesty

Follow the steps below to extract your data.

Step by step:

1. Sign in to your Guesty account.
2. In the side navigation menu, click Reservations.
3. 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.
4. Click Download CSV to download the report.
5. In the top navigation bar, click the mode selector and select Setup mode.
6. Click Billing and select Plan & billing info.
7. From the “Company information” section, copy your “VAT or company tax ID”.

Prepare and submit your DAC7 data

Guesty provides data preparation tools but doesn't manage submission or compliance. After exporting your report from Guesty, follow these external compliance steps:

Step by step:

1. Prepare the data: Calculate totals per property per quarter based on the data you downloaded from Guesty.
2. Verify the data: Confirm that owner details match government records, financial accuracy aligns with payment processor statements, and property records mirror official land registry documents.
3. Format and complete your report: Download the format template required by your government gateway platform, and enter your data. Formats differ by country, but an XML-type file is commonly required. Consult your tax authority or tax advisor for specifics.
4. Upload and submit: Use the designated submission portal for your EU member state or the UK, such as the Government Gateway in the UK. Log in to the portal and follow the steps to upload your file. Confirm that you receive a confirmation once your file is processed.
5. Keep records: Keep copies of all reports and submission receipts for future reference or audits.