Everything you need to know about DAC7

As a result of the new DAC7 (Directive on Administrative Co-operation) EU directive, Booking.com has to report information about our partners to the Dutch Tax Authorities (DTA). Below you’ll find everything you need to know about the DAC7 EU directive. 

In this article:

About DAC7 and what it means for you

DAC7 is an EU law aiming to improve tax cooperation between EU member states—including transparency on revenues earned by sellers like you, our partners—through digital platforms. Ultimately, this law will simplify the collection of taxes by local tax authorities. 

As part of this and as a Dutch company, Booking.com has to report information about our partners—both business entities and individuals conducting business through our platform and business transactions executed via our platform—to the Dutch tax authorities (DTA). The DTA will then share this info with the tax authorities from other EU member states.

Partners included within the scope of DAC7

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). 

Example: Company A has a contract with Booking.com, where Company A manages a portfolio of properties owned by other entities/individuals (not owned by Company A). In this case, Company A will be a reportable seller for DAC7 data reporting, and we’ll request to provide data about Company A.

Partners included within the scope of DAC7:

Accommodations

• Partners with immovable properties located in the EU fall within the scope of DAC7, regardless of whether the seller has its primary address within or outside the EU.

Attractions / Car Rental Services / Rides

• Partners that are residents in one of the EU Member States (i.e. either their primary residence address as individuals or their registered office address for entities is in the EU).

For the Attractions category, services involving admission to publicly accessible events and attractions such as theme parks, theater shows, sports games, or similar events are outside the scope of DAC7.

DAC7 exclusions

Entities excluded from the scope of DAC7:

• Governmental entities
• Entities listed on a stock exchange and their related entities whose shares are held for more than 50% 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, theater shows, sports games, or similar events
• For Accommodations: More than 2,000 bookings per calendar year. 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.

How this impacts your property registration

For new partners and EU properties registering after January 1, 2023:

• If registering after January 1, 2023, you’ll be asked to complete the Know Your Partner (KYP) form, which has been updated to include additional fields for DAC7. Note: You must complete the KYP form even if your property’s status isn’t set to Open/Bookable.

For existing partners and EU properties who have registered before January 1, 2023: 

• If you’re an existing partner who’s listed their property on our platform before January 1, 2023, you’ll be asked to complete an updated Know Your Partner (KYP) form within the 2023 and 2024 calendar years. This request will be sent to you separately at a later date.
• If you’re an existing partner who lists a new property after January 1, 2023, the new property will fall within the scope of DAC7. This means you’ll be required to complete the updated KYP form for this property.

How we collect and share DAC7 data

The Know Your Partner (KYP) form

The current KYP form has been updated to include additional fields for you to provide the necessary information for DAC7. We'll send an email with a link to the form, plus you’ll see a banner with a link on the Extranet.

You’ll have 90 days to complete the Know Your Partner (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 subsequent properties. 

If you haven’t submitted the Know Your Partner (KYP) form within the first 30 days, we’ll send a reminder email on day 30. If the KYP form still needs to be submitted, we’ll send a second reminder email on day 60. If you fail to submit the KYP form within 90 days, your EU-based properties that finished registration after January 1, 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 as long as there are no additional reasons as to why it was suspended. 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 at Booking.com or open sources. If we have questions about the validity of the data provided, you’ll receive a notification or we may contact you.

As of January 1, 2023, DAC7 is an annual reporting obligation. The DAC7 collected data will be reported to the Dutch tax authorities by January 31 following the reporting year. For example, we’ll report data by January 31, 2024 for the 2023 reporting year, by January 31, 2025 for the 2024 reporting year, and so on.

Before sending a report to the Dutch tax authorities, Booking.com will let you know what data will be shared about your transactions via the Booking.com platform during the reporting year.

Data collection and reporting

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

• 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 info:

• 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
• Date of birth
• Country and city of birth

 In addition, you must add the Land Registration Number (i.e. cadastre) separately for each property on the Extranet.

Transactional data could include:

• Revenue (consideration) received from the booker (without Booking.com commission and deposit amount)
• Booking.com commission
• (Withheld) taxes, if applicable
• Number of bookings
• Number of rented days

Glossary

Entity: 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 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 fulfillment 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: physical person conducting business through our platform and considered a business by Booking.com and BTL from a tax perspective.

List of 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

List of EU territories: 

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

Read our DAC7 FAQ