DAC7 — EU Digital Platform Reporting Obligations

What OH-Stay hosts and partners need to know

 

The Basics

What is DAC7?

DAC7 (Council Directive (EU) 2021/514) is an EU directive that requires digital platforms — including vacation rental platforms like OH-Stay — to collect specific information about their sellers (hosts) and report their income to EU tax authorities once a year. It entered into force on 1 January 2023.

Why does DAC7 exist?

The EU introduced DAC7 to increase tax transparency in the sharing and gig economy. Before DAC7, tax authorities had limited visibility into income earned by individuals and businesses through digital platforms. DAC7 closes that gap by requiring platforms to report host earnings directly to the relevant tax authority.

Does DAC7 create a new tax?

No. DAC7 does not impose any new tax. It is purely a reporting obligation. Your income from hosting is taxed under the existing tax rules of your country of residence — nothing changes there. What changes is that the tax authority now receives a report from OH-Stay confirming how much income you earned through the platform.

When did DAC7 start?

DAC7 came into effect on 1 January 2023. The first reports (covering the 2023 calendar year) were submitted by platforms to tax authorities in early 2024. OH-Stay will report annually for each calendar year, with reports due by 31 January of the following year.

 

Who It Affects

Does DAC7 apply to me as an OH-Stay host?

If you are a host with a property located in an EU member state, or if you are tax-resident in an EU member state, then yes — OH-Stay is required to collect your information and report your earnings. This applies regardless of where OH-Stay itself is based.

I’m based in the UK. Does DAC7 apply to me?

The UK has implemented its own equivalent rules called the Digital Platform Reporting (DPR) or Reporting Rules for Digital Platforms (RRDP). These mirror DAC7 and require OH-Stay to report UK-based host earnings to HMRC. The data requirements are very similar. If you’re a UK host, you’ll be asked for the same information.

Does DAC7 apply to hosts outside the EU and UK?

If your property is located in the EU, DAC7 applies regardless of where you personally live. For example, a US citizen who owns a villa in Marbella and lists it on OH-Stay is a reportable seller because the property is in Spain. OH-Stay must report their earnings to the Spanish tax authority.

I’m a management company managing properties for other owners. Who is the ‘reportable seller’?

This depends on your contract structure. If the rental income goes to you (the management company) and you then distribute to owners, you are the reportable seller. If the income goes directly to the

property owner and you simply take a management fee, the owner is the reportable seller. In some cases, both parties may need to be reported. We recommend checking with your accountant.

Are there any exemptions?

Yes. Sellers of goods (not relevant for vacation rentals) are exempt if they have fewer than 30 transactions AND earn less than €2,000 in a calendar year. However, this exemption does not typically apply to property rental income — even one rental booking can trigger the reporting obligation. Large hotel operators with more than 2,000 rentals per property per year are also excluded, as they are subject to other tax regimes.

 

What Information OH-Stay Collects

What data does OH-Stay need from me?

OH-Stay is required to collect and verify the following information from all reportable hosts:

● Full legal name (or business name if you’re a company)

● Primary address

● Date of birth (for individuals)

● Tax Identification Number (TIN) and the country that issued it

● VAT registration number (if applicable)

● Financial account details (IBAN or other identifier where payouts are sent)

● For property rentals: the address of each listed property and, where available, the land registry number

What if I don’t have a Tax Identification Number?

If you’re an individual without a TIN, OH-Stay is required to collect your place of birth instead. However, we strongly recommend obtaining a TIN from your country of tax residence, as this simplifies reporting and avoids potential issues with tax authorities.

What happens if I don’t provide the required information?

OH-Stay is legally required to follow up. If you don’t provide the required information after two reminders and a 60-day grace period, OH-Stay may be required to suspend your account or withhold your payouts until the information is provided. This isn’t something we want to do — but the directive leaves us no choice.

Important: OH-Stay will never ask you for this information via email or phone. All DAC7 data collection happens securely through your OH-Stay account settings.

 

What OH-Stay Reports to Tax Authorities

What exactly does OH-Stay report?

For each reportable host, OH-Stay submits the following to the relevant EU tax authority once per year:

● Your identity information (name, address, TIN, date of birth)

● Total payments made to you in each quarter of the calendar year

● The number of transactions (bookings) underlying those payments in each quarter

● Any fees, commissions, or taxes deducted from your payouts

● Your financial account identifier (IBAN)

 

DAC7 — EU Digital Platform Reporting Obligations

What OH-Stay hosts and partners need to know

 

The Basics

What is DAC7?

DAC7 (Council Directive (EU) 2021/514) is an EU directive that requires digital platforms — including vacation rental platforms like OH-Stay — to collect specific information about their sellers (hosts) and report their income to EU tax authorities once a year. It entered into force on 1 January 2023.

Why does DAC7 exist?

The EU introduced DAC7 to increase tax transparency in the sharing and gig economy. Before DAC7, tax authorities had limited visibility into income earned by individuals and businesses through digital platforms. DAC7 closes that gap by requiring platforms to report host earnings directly to the relevant tax authority.

Does DAC7 create a new tax?

No. DAC7 does not impose any new tax. It is purely a reporting obligation. Your income from hosting is taxed under the existing tax rules of your country of residence — nothing changes there. What changes is that the tax authority now receives a report from OH-Stay confirming how much income you earned through the platform.

When did DAC7 start?

DAC7 came into effect on 1 January 2023. The first reports (covering the 2023 calendar year) were submitted by platforms to tax authorities in early 2024. OH-Stay will report annually for each calendar year, with reports due by 31 January of the following year.

 

Who It Affects

Does DAC7 apply to me as an OH-Stay host?

If you are a host with a property located in an EU member state, or if you are tax-resident in an EU member state, then yes — OH-Stay is required to collect your information and report your earnings. This applies regardless of where OH-Stay itself is based.

I’m based in the UK. Does DAC7 apply to me?

The UK has implemented its own equivalent rules called the Digital Platform Reporting (DPR) or Reporting Rules for Digital Platforms (RRDP). These mirror DAC7 and require OH-Stay to report UK-based host earnings to HMRC. The data requirements are very similar. If you’re a UK host, you’ll be asked for the same information.

Does DAC7 apply to hosts outside the EU and UK?

If your property is located in the EU, DAC7 applies regardless of where you personally live. For example, a US citizen who owns a villa in Marbella and lists it on OH-Stay is a reportable seller because the property is in Spain. OH-Stay must report their earnings to the Spanish tax authority.

I’m a management company managing properties for other owners. Who is the ‘reportable seller’?

This depends on your contract structure. If the rental income goes to you (the management company) and you then distribute to owners, you are the reportable seller. If the income goes directly to the

property owner and you simply take a management fee, the owner is the reportable seller. In some cases, both parties may need to be reported. We recommend checking with your accountant.

Are there any exemptions?

Yes. Sellers of goods (not relevant for vacation rentals) are exempt if they have fewer than 30 transactions AND earn less than €2,000 in a calendar year. However, this exemption does not typically apply to property rental income — even one rental booking can trigger the reporting obligation. Large hotel operators with more than 2,000 rentals per property per year are also excluded, as they are subject to other tax regimes.

 

What Information OH-Stay Collects

What data does OH-Stay need from me?

OH-Stay is required to collect and verify the following information from all reportable hosts:

● Full legal name (or business name if you’re a company)

● Primary address

● Date of birth (for individuals)

● Tax Identification Number (TIN) and the country that issued it

● VAT registration number (if applicable)

● Financial account details (IBAN or other identifier where payouts are sent)

● For property rentals: the address of each listed property and, where available, the land registry number

What if I don’t have a Tax Identification Number?

If you’re an individual without a TIN, OH-Stay is required to collect your place of birth instead. However, we strongly recommend obtaining a TIN from your country of tax residence, as this simplifies reporting and avoids potential issues with tax authorities.

What happens if I don’t provide the required information?

OH-Stay is legally required to follow up. If you don’t provide the required information after two reminders and a 60-day grace period, OH-Stay may be required to suspend your account or withhold your payouts until the information is provided. This isn’t something we want to do — but the directive leaves us no choice.

Important: OH-Stay will never ask you for this information via email or phone. All DAC7 data collection happens securely through your OH-Stay account settings.

 

What OH-Stay Reports to Tax Authorities

What exactly does OH-Stay report?

For each reportable host, OH-Stay submits the following to the relevant EU tax authority once per year:

● Your identity information (name, address, TIN, date of birth)

● Total payments made to you in each quarter of the calendar year

● The number of transactions (bookings) underlying those payments in each quarter

● Any fees, commissions, or taxes deducted from your payouts

● Your financial account identifier (IBAN)

 

Can I opt out of DAC7 reporting?

No. DAC7 is a legal obligation on OH-Stay as a platform operator. We cannot exempt individual hosts from reporting, even if you request it. If your property is in the EU or you are tax-resident in the EU, your earnings will be reported. This applies to all platforms — Airbnb, Booking.com, Vrbo, and every other vacation rental platform operating in Europe.

 

What You Should Do

What action do I need to take?

Three things:

● Ensure your OH-Stay account has accurate, up-to-date personal and tax information — especially your legal name, address, TIN, and date of birth.

● If you’re a management company, clarify with your accountant who is the reportable seller for each property (you or the owner).

● Declare your OH-Stay income on your annual tax return. DAC7 means the tax authority already knows what you earned — make sure your return matches.

What if I already declare my rental income?

Then DAC7 changes nothing for you in practice. You’re already doing the right thing. The report from OH-Stay will simply confirm to the tax authority what you’ve already declared. Think of it as independent verification, not a new obligation.

What if I haven’t been declaring my rental income?

We strongly recommend speaking to a tax advisor immediately. DAC7 means the tax authority in your country will now receive a report showing exactly how much you earned through OH-Stay. If this doesn’t match your tax return, it will be flagged. Most EU countries offer voluntary disclosure programmes that reduce penalties if you come forward before being contacted by the tax authority.

 

Penalties & Enforcement

What happens if OH-Stay doesn’t comply with DAC7?

Penalties for platform non-compliance vary by EU member state but can be severe. In the Netherlands, intentional non-compliance can result in fines of up to €900,000. In Spain, penalties are set out in the General Tax Law. In extreme cases, the EU can block access to non-compliant platforms entirely. OH-Stay takes its DAC7 obligations seriously and files all reports on time.

What happens to me if I don’t provide my information?

If you fail to provide the required information after two reminders and a 60-day period, OH-Stay may be required to close your account, suspend your listings, or withhold your payouts. These are not actions we take lightly, but the directive requires platforms to enforce compliance. The simplest way to avoid this is to keep your account information up to date.

 

Further Questions

If you have questions about DAC7 and how it applies to your OH-Stay account, contact us at info@oh-stay.com.