About DAC7 and what it means for you

DAC7 (Directive of Administrative Co-operation)  is an EU law aiming to improve tax cooperation between EU member states – including transparency on revenues earned by sellers – 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 BOOKING.COM TRANSPORT LIMITED (Booking.com) have business in the EU, Booking.com has to report information about our partners and business transactions executed via our platform to the tax authorities of one of EU Member States. Booking.com has chosen to report to the Dutch Tax Authorities (DTA). The DTA will then share this information 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 Transport Limited (Booking.com) have contractual relationships, i.e. contractual parties. 

 

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

 

Car Rental Services / Rides

 

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

DAC7 exclusions

Entities excluded from the scope of DAC7:

 

• Government entities
• Publicly listed entities 

 

How this impacts your business 

For new partners contracted from 1 January 2023:

 

• If registering from 1 January 2023, you’ll be requested to provide additional data for DAC7 purposes during your onboarding process.

 

For existing partners who have registered before 1 January 2023: 

 

• If you’re an existing partner who registered before 1 January 2023, you will be asked to provide additional data for DAC7 purposes 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 country of operation after 1 January 2023, the country will fall within the scope of DAC7 for data collection from 1st January 2024.
• If you are an existing partner and you change your registration address from outside the EU to an EU country, this will immediately fall within the scope of DAC7. This means you  will be required to provide additional data for DAC7 purposes.

How we collect and share DAC7 data

Reporting deadline

 

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

 

Before sending a report to the DTA, Booking.com will let you know what data will be shared about your transactions via email  before the end of the reporting deadline .

 

Data collection and reporting

 

If you identify as being a legal business entity, we request the below information for DAC7 purposes (but not limited to):

• Full legal name (pre-filled from your contract and can only be edited by contacting your Booking.com Supply Manager)
• Tax Identification Number, incl. issued country
• Business registration number
• Value Added Tax number
• Registered business address, incl. country

Transactional data could include:

• Revenue (consideration) received by Partner in reporting year
• Withheld Taxes (if applicable)
• Number of complete bookings (reservations) in reporting year

 

Glossary

Entity: legal person or legal arrangement, such as a corporation, partnership, trust or 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 shall be determined by multiplying the rates of holding through the successive tiers. A person holding more than 50% of the voting rights shall be deemed to hold 100%.

Private limited company: A company whose shares are not traded on a stock exchange, or a company that’s owned by a publicly listed company by 50% or less.

 

Publicly listed entity: A stock listed company or related to such company ( for Example, a company whose shares are held for more than 50% by a stock listed company, including voting rights).

 

Government entity: the government, political subdivision, or any wholly owned agency or instrumentality of a country or any jurisdiction (which includes a state, province, county, or municipality) 

 

Partnership: A general or commercial partnership is a company where at least 2 personas work together under one common name.

 

Sole trader: A natural person conducting business through our platform and considered a business from a tax perspective.

List of EU member states: 

• Austria
• Belgium
• Bulgaria
• Croatia
• Cyprus* *the areas of the Republic of Cyprus in which 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