Does DAC7 apply to a platform based outside the EU?

Yes. DAC7 applies to reporting platform operators regardless of where they are established, if the platform facilitates a relevant activity for sellers resident in the EU or for rental of immovable property located in the EU. The relevant activities are sale of goods, personal services, rental of immovable property, and rental of transport.

What is the difference between collecting seller data and verifying it under DAC7?

Collecting means recording the self-declared name, address, and identifiers a seller provides at onboarding. Verifying means checking that data against a reliable, independent source, such as a public company registry, before the operator relies on it. DAC7 due-diligence rules require verification, not just collection.

What happens if a business seller does not provide the required information?

The operator must send at least two reminders after the initial request. If the seller still has not provided the required information after 60 days from the initial request, the operator must close the account or withhold payment until the information is provided.

Does Prometiam file the DAC7 report on behalf of a platform?

No. Prometiam verifies the business-seller identifiers needed for a due-diligence file, such as legal name, registered address, and business registration number, plus sanctions screening. Compiling and filing the DAC7 report, and determining tax residency, remain the responsibility of the platform operator.

Does Prometiam verify individual, non-business sellers for DAC7?

No. Prometiam verifies registered business entities against official company registries. DAC7 also covers individual sellers, whose identity verification is a separate KYC process outside the scope of a company-registry API.

DAC7 seller verification: what platforms must collect and verify

DAC7 requires reporting platform operators to collect and independently verify business-seller data before reporting it — a self-declared onboarding form is not enough. This guide explains what must be checked, the verify-then-report cycle, and how Prometiam confirms a seller's legal name, registered address, and business registration number against the official registry.

What DAC7 is

DAC7 (Council Directive (EU) 2021/514) took effect 1 January 2023, with the first report due 31 January 2024 (covering 2023) and every 31 January since. It applies to reporting platform operators — including non-EU ones — that facilitate a relevant activity (sale of goods, personal services, rental of immovable property, rental of transport) for EU-resident sellers or EU-located property.

What operators must verify for business sellers

Legal name and primary address
Tax Identification Number (TIN) and issuing member state
VAT number where held, and business registration number
Account-activity data: IBAN, consideration paid per quarter, fees withheld

The verify-then-report flow: collect self-declared data, verify it against a reliable independent source and determine tax residency, chase missing data (two reminders, close/withhold after 60 days), file by 31 January, then automatic exchange between member states.

How Prometiam fits

Prometiam covers step 2's company-verification leg across Spain, France, the UK, Ireland, Poland, and Norway: resolve the seller against the registry (companies/search), return the verified profile (companies/id), and screen against sanctions and US export-control lists (EU, UN, OFAC, UK OFSI) with scored fuzzy matching. It does not file the DAC7 report, determine tax residency, provide TINs, or verify individual non-business sellers (KYC). Ireland and Poland are company-level only.

Frequently asked questions

Does DAC7 apply to a platform based outside the EU?: Yes. DAC7 applies to reporting platform operators regardless of where they are established, if the platform facilitates a relevant activity for sellers resident in the EU or for rental of immovable property located in the EU. The relevant activities are sale of goods, personal services, rental of immovable property, and rental of transport.
What is the difference between collecting seller data and verifying it under DAC7?: Collecting means recording the self-declared name, address, and identifiers a seller provides at onboarding. Verifying means checking that data against a reliable, independent source, such as a public company registry, before the operator relies on it. DAC7 due-diligence rules require verification, not just collection.
What happens if a business seller does not provide the required information?: The operator must send at least two reminders after the initial request. If the seller still has not provided the required information after 60 days from the initial request, the operator must close the account or withhold payment until the information is provided.
Does Prometiam file the DAC7 report on behalf of a platform?: No. Prometiam verifies the business-seller identifiers needed for a due-diligence file, such as legal name, registered address, and business registration number, plus sanctions screening. Compiling and filing the DAC7 report, and determining tax residency, remain the responsibility of the platform operator.
Does Prometiam verify individual, non-business sellers for DAC7?: No. Prometiam verifies registered business entities against official company registries. DAC7 also covers individual sellers, whose identity verification is a separate KYC process outside the scope of a company-registry API.