DAC7 (Council Directive (EU) 2021/514 amending Directive 2011/16/EU) is the seventh amendment to the Directive on Administrative Cooperation in the field of taxation. It aims to ensure tax transparency and fairness in the digital economy by requiring digital platforms to report information about sellers and service providers operating through these platforms, for certain types of services and relevant earnings gained through these platforms, to relevant tax authorities.
How Does DAC7 Affect Fanсentro Creators?
As Fanсentro operates as a digital platform enabling creators to monetize their content, it is classified as a Reporting Platform Operator required to comply with DAC7. Creators using the Fancentro platform for the purpose of distributing, selling and gaining earnings from their content, are considered as Reportable Sellers under DAC7. Consequently, Fanсentro is required to collect, verify and report specific information about its creators to its respective tax authority.
The Report shall be in relation to any “Reportable Activity” as defined in DAC7. For clarity, “Reportable Activity” provided under the platform shall be “Personal Services”, which are defined as a service involving time- or task-based work performed by one or more individuals, acting either independently or on behalf of an Entity, and which is carried out at the request of a user, either online or physically offline after having been facilitated via a Platform.
Reporting Criteria:
• Creators who generated earnings for reportable activities through Fancentro;
• Have an EU TIN;
• Have residential address/place within any of the 27 EU countries.
Specific Information to be Collected and Verified by Fancentro
To comply with DAC7 obligations, Fancentro will collect, verify and report the following information about creators who meet the reporting criteria.
Information to be Collected and Verified:
1. Personal Identification Information: Full legal name of the creator - Date of birth - Government-issued identification documents.
2. Tax Information: Tax identification number (TIN) - Tax residency status - VAT registration number (if applicable).
3. Address Information: Primary residential address of the creator - Documentation verifying the address.
4. Payment Information: Creator’s Financial Account Identifier to which earnings are paid or credited.
Information to be Reported to Tax Authority under DAC7 in relation to Creators
1) Creator’s Identification:
o Full name of the creator.
o Primary residential address.
o Tax identification number (TIN) including each EU Member State of issuance of the TIN.
o VAT identification number issued to the seller where available.
o Date and place of birth (for individuals).
o Each Member State in which the Reportable Seller is resident.
2) Financial Information:
o Bank details of the account where earnings will be credited or paid.
o Total earnings paid or credited during each quarter.
o Number of activities/transactions conducted.
o Any fees, commissions, or taxes withheld by Fancentro.
3) Account Information:
o Creator’s bank account number or virtual account identifier where payments were made; or
o where bank account used is not under the name of the Creator, that account’s holder name, as well as any other financial identification information.
Notes:
• Where the payment recipient differs from the creator (Reportable Seller), the name of the financial account holder and any other available financial identification information for that account holder shall be reported.
• For creators registered under agency accounts, the information collected and reported will be that of the individual creator, not the agency. This includes personal identification information, tax identification numbers, and residential address of the creator, while maintaining records of the payment recipient's details where different from the creator. In relation with the reportable information, those remain the same.