DAC7 Reporting Obligations - Frequently Asked Questions (FAQ)

DAC7 is a new set of tax transparency rules that apply across the European Union (“EU”) from 2023. Digital platforms like Uber must report certain information about their partners (“reportable sellers”) to the tax authorities (refer to the question “What kind of information is Uber going to report to the tax authorities?”). Digital platforms will report information once per year. For instance, with respect to 2023, the information will be reported in January 2024.

The DAC7 rules were enacted based on the Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation and local (transposing) laws in your respective EU state.

DAC7 applies to contractual partners who use the Uber platform in order to provide services (such as passenger transportation, delivery of meals, etc.) and/or sell goods (such as the sale of meals) in one of the EU states. For example, Partner A has a contract with Uber. Partner A manages a fleet of vehicles and has affiliates/subcontractors who are drivers. In this case, provided that Uber does not remit funds to these affiliates/subcontractors, only Partner A will be a reportable seller for DAC7 data provision and Uber will report information only about Partner A. DAC7 applies as of 2023 and going forward. Transactions that took place prior to 2023 are not in the scope of DAC7 rules and will not be reported. DAC7 applies to both - individual entrepreneurs and legal entities.

Yes, if you provide services and/or sell goods using the Uber platform in one of the European Union states. Note that Uber will only report DAC7 information about your transactions that took place as of 2023. DAC7 information about your transactions prior to 2023 will not be reported.

These new rules apply to all digital platforms (including Uber) that facilitate, among other things, the provision of personal services (such as passenger transportation, delivery of meals, etc.) and/or sell goods (such as the sale of meals).

The scope of information that Uber is required to report varies depending on whether you are an individual or a legal entity. Uber is required to report the following information:

Uber will collect this information about you in the course of a year and report it in January of the following year (for example, Uber will collect information in the course of 2023 and report it in January 2024).

You are not required to report any information to the tax authorities as part of the DAC7 reporting. Digital platforms like Uber are responsible for collecting and reporting information on an annual basis. At the same time, we may ask you to provide some information to us (such as, for example, your tax identification number, official legal name, official address).

Digital platforms are obliged to determine whether the information about partners (reportable sellers) that they collect is reliable. In the first place, we will rely on the information that you provided to us (this usually happens when you create an account on the Uber platform). If you also provided Uber with copies of documents in a searchable (parsable) format, we may use them to double-check if the information that you inserted yourself is reliable. If we notice discrepancies, we may ask you to update the relevant information.

The overall goal of introducing the DAC7 rules is to improve tax transparency around transactions that take place on digital platforms. The exact use of DAC7 information by the tax authorities may differ depending on the EU state in which you run your business. In principle, the main goal of the DAC7 reporting is to simplify the process of verifying your income tax statements. The tax authorities will have access to your information for the first time in 2024 (in respect of your 2023 transactions). At this stage, it is not yet clear to what extent will the DAC7 information be used by the tax authorities to verify your tax returns.

In most cases, Uber has all or almost all of the information that is required under the DAC7 rules. If Uber misses some of the required information, we will reach out to you and ask you to provide the missing information. We will try to make this process as smooth as possible for you.

If Uber misses some of your information, we will send you a couple of reminders and give you sufficient time to provide the required information. If you decide not to provide the required information despite our reminders we are required by law to suspend payouts to you until you provide the required information. In some cases, we may be required to suspend your account on the Uber platform.