Everything you need to know about DAC7

Updated 1 month ago | 5 min read time
Save

The EU’s Directive on Administrative Co-operation (DAC7) is an annual reporting obligation that came into effect on 1 January 2023. This law aims to improve tax cooperation between EU member states through digital platforms, including transparency on revenue earned by sellers like you, our partners. You’ll find everything you need to know about the DAC7 EU directive in this article.

 

If you have any properties in Australia (no properties in the EU), please review this article before filling out the Know Your Partner (KYP) form.


Our obligations under DAC7

As a Dutch company operating under the EU’s DAC7, we’re required to report information about our partners to the Dutch tax authorities. We are required to report details about the entities and individuals with whom we have a signed contract as well as data on the business transactions they executed through our platform. Transactional data could include:

  • Revenue received from the customer (excluding our commission and the deposit amount)
  • Our commission
  • (Withheld) taxes, if applicable
  • Number of bookings
  • Number of rented days

The data we collect in a given year will be reported to the Dutch tax authorities by 31 January in the following reporting year. The Dutch tax authorities then share this information with tax authorities from other EU member states. Ultimately, this law will simplify the audit of taxes by local tax authorities.

For DAC7 purposes, partners are defined as entities or individuals conducting business through our platform with whom Booking.com or Booking Transport Limited (BTL) have contractual relationships (i.e. contractual parties). We consider all individuals as businesses from a tax perspective.

For example: Company A has a contract with Booking.com, where Company A manages a portfolio of properties owned by other entities or individuals (not owned by Company A). In this case, we’re obligated to report information about Company A – not the actual property owners – for DAC7 data reporting. In other words, we consider the property management company our partner, not the owners of the properties that they manage. We will report data about contracting party regardless how payment flows are setup (they might be held between booking.com and property owner/principals directly)


Partners included within the scope of DAC7

Accommodation partners included within the scope of DAC7 reporting are those with immovable properties located within the EU or whose primary address is located within the EU.

Attractions, Car rental and Rides partners included within the scope of DAC7 reporting are those that are residents of an EU member state (i.e. the primary residence of an individual or the registered office address of an entity is in the EU).

All partners included within the scope of DAC7 are now required to complete the Know Your Partner (KYP) form when registering for the first time or listing a new property on our platform. Existing partners are required to complete an updated KYP form before the end of 2024.


DAC7 exemptions

Entities excluded from the scope of DAC7:

  • Governmental entities.
  • Entities listed on a stock exchange and their related entities with more than 50% of their shares held by a stock-listed entity, including voting rights.

Services excluded from the scope of DAC7:

  • Flights.
  • Attractions involving admission to publicly accessible events and attractions such as theme parks, theatre shows, sports games or similar events.
  • Accommodations with more than 2,000 bookings per calendar year per property. If you have an EU property listing with more than 2,000 bookings per calendar year as of December 31, your listing will be excluded from DAC7 reporting. If you have other property listings that didn’t reach 2,000 bookings (per listing, per calendar year), they will be included in DAC7 reporting. An exception applies to property listings only – not to attractions, car rentals, taxis, and other products.

Collecting data through the Know Your Partner form

All new partners are required to fill in the Know Your Partner (KYP) form when registering on our platform for the first time. The form has been updated to include additional fields to collect data for DAC7 reporting.

  • New EU-based partners and new partners with EU properties are required to complete the updated KYP form during the registration process. Please note that you must complete the KYP form even if your property’s status isn’t set to Open/Bookable.
  • Existing partners listing new EU properties after 1 January 2023 will be required to complete the updated KYP form for newly listed properties that will fall within the scope of DAC7.
  • Existing partners with EU properties and existing EU-based partners without EU properties who registered before 1 January 2023 will be asked to complete the updated form before the end of 2024. We'll send an email with a link to the updated KYP form. You’ll also see a banner with a link in your extranet.

You’ll have 90 days to complete the KYP form and provide data about the contracting party – the entity or individual who signs the contract with Booking.com. The 90-day period will begin when you finish the registration of your property, regardless of whether or not it’s open for bookings. If you list multiple properties, the 90-day timeline from your first property will apply to all subsequently listed properties.

If you haven’t submitted the KYP form within 30 days of registration, we’ll send monthly reminder emails. If you fail to submit the KYP form within 90 days, your EU-based properties that were registered after 1 January 2023 will be temporarily suspended. If you use Payments by Booking.com, the payouts will also be blocked.

Once you submit your KYP form, you can reopen your EU properties on our platform provided there are no additional reasons for the suspension. If you use Payments by Booking.com, your payouts will be unblocked.

Upon submission of the KYP form, we’ll validate selected pieces of data against other information available on our platform or via publicly available sources. If we have questions about the validity of the data provided, you’ll receive a notification or we may contact you.

Before submitting the DAC7 data report to the Dutch tax authorities, we’ll send you an email letting you know the report has been compiled. If you’d like to review it, you can download your part of the report from the compliance centre in the extranet.

If after reviewing the report extraction you need to make any changes to your personal or business data, you can do this by re-submitting the KYP form in the compliance centre. Please note that any changes you make at this point will only be reflected in the next reporting cycle.


What data we collect from you

If you identify as a legal business entity, we’ll request the following information from you:

  • Full legal name (pre-filled from your contract, editable only by contacting Customer Service)
  • Tax Identification Number and issuing country
  • Business registration number
  • Value Added Tax number
  • Registered business address (including country)

If you identify as an individual conducting business, we’ll request the following information from you:

  • Full legal name (pre-filled from your contract, editable only by contacting Customer Service)
  • Tax Identification Number and issuing country
  • Value Added Tax number
  • Primary residence address (including country)
  • Date of birth
  • Country and city of birth

All partners also need to provide a land registration number for each property located in the EU that you list on our platform. A land registration number, also known as a cadastral number, is a unique identification assigned to a property that’s recorded in an official register.

You can provide your land registration number on the extranet’s General info page under the Property tab. If you list multiple properties, add the land registration number for each property in its individual property extranet. If a single property has multiple land registration numbers, they can be added as a list with each number separated by commas.

Your land registration number can be found on your property’s deed or through your municipality or country land register website. If you have further questions, refer to the European Union website on local land registers of EU countries.


Glossary

Entity – a legal person or legal arrangement (e.g. a corporation, partnership, trust, foundation). An entity is a related entity of another entity if either entity controls the other entity, or if the two entities are under common control. For this purpose, control includes direct or indirect ownership of more than 50% of the vote and value in an entity. In indirect participation, the fulfilment of the requirement for the holding of more than 50% of the right of ownership in the capital of the other entity will be determined by multiplying the rates of holding through the successive tiers. A person holding more than 50% of the voting rights will be deemed to hold 100%.

Individual – a physical person conducting business through our platform and considered a business by Booking.com and BTL from a tax perspective.

EU member states – 

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus – the areas of the Republic of Cyprus where the Government of the Republic of Cyprus exercises effective control
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • The Netherlands
  • Poland
  • Portugal 
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden

EU territories –

  • Åland Islands
  • Azores
  • Canary Islands
  • French Guiana
  • Gibraltar
  • Guadeloupe 
  • Madeira
  • Martinique
  • Mayotte
  • Réunion
  • Saint Martin

DAC7 FAQ

To find answers to the most commonly asked questions about the DAC7 EU directive, read our DAC7 FAQ page.

 

You can now access all your legal messages and updates anytime, in one place.

Read more

Is this article helpful?