DAC7 FAQ

Understanding DAC7

What is the purpose of DAC7?

DAC7, also known as the Directive on Administrative Cooperation, is a legal instrument designed to improve administrative cooperation related to taxation within the European Union. It aims to strengthen tax transparency and cooperation in the digital economy by ensuring that income from digital platforms is declared to tax authorities, including vacation rental platforms like Holidu.

This directive particularly focuses on the exchange of information in relation to income earned through digital platforms, such as intermediary platforms for vacation rentals. By ensuring proper taxation and reducing opportunities for tax evasion, DAC7 requires intermediary platforms to collect and share certain financial information with tax agencies about owners and properties booked through their system.

More information regarding DAC7 is available on the website of the German Federal Ministry of Finance.

Reporting and Compliance

Does Holidu report data regarding my properties and bookings directly to tax authorities?

Yes. As a company based in Germany, Holidu submits the DAC7 declaration to the German Tax Office (Bundeszentralamt für Steuern). After this, the German Tax Office is responsible for forwarding this data to the Tax Authorities of the relevant EU Member State(s).

Do you pass on information from all bookings to the Tax Office?

Yes. Holidu is required to do this under DAC7. The data we report includes the revenues earned from all confirmed bookings, along with property-specific details such as total payments, number of bookings, commissions, and taxes. This information is submitted to the German Tax Office, which then shares it with the relevant EU Member State authorities.

What information is Holidu required to report to the Tax Office under DAC7?

Under DAC7, Holidu must report specific details about each host and their properties.

Per host:

• Identification information (full name or company name)
• Date of birth (if individual)
• Address
• Taxpayer Identification Number
• Company registration number (if applicable)

Per property:

• Complete property address
• Total payments received
• Number of bookings
• Total commissions (including VAT)
• Any applicable taxes

Does this affect my income tax declaration?

No. DAC7 does not impact your income tax declaration. You still need to declare your income as you normally would. Please consult your tax advisor for further information regarding income tax declarations.

What are the penalties for non-compliance with DAC7?

In the event that hosts fail to provide the required information, Holidu will be required by DAC7 to freeze all future payouts until such information is provided.

Who Needs to Comply

Do I, as a Host, need to make a declaration under DAC7?

This depends on your legal relationship with the property. Only platforms offering intermediary services are required to make a declaration under DAC7. If you are an intermediary, you may need to make a declaration under DAC7. Please consult your tax advisor for further information.

My property is located in the EU, but I am not an EU resident. Does DAC7 apply to me?

Yes. DAC7 applies to all properties located within the EU territory, regardless of whether the host is an EU resident.

My property is a boat. Do you still need my data for the DAC7 declaration?

Yes. If your property is a boat, Holidu also needs to make a DAC7 declaration for your bookings.

If I deactivate my Holidu account now, will my data still be shared?

Yes. Holidu is required to report data for all bookings made through the platform, regardless of whether the account is still active.

Taxpayer Identification Number (TIN)

What information does Holidu need in order to make the declaration under DAC7?

To make the declaration, Holidu needs:

• Your Taxpayer Identification Number (TIN)
• If you are registered as a company, your Commercial Registration Number

Where can I find my Taxpayer Identification Number?

Your Taxpayer Identification Number (TIN) can be found in different documents depending on your country. For detailed information about where to locate your TIN, visit the European Commission's TIN directory.

Is it mandatory to enter my TIN?

Yes, this is mandatory. Holidu needs this information in order to make the declaration under DAC7.

Where can I enter my TIN?

To add your Tax Identification Number (TIN), follow these steps:

1. Log in to your Holidu account
2. Click the Holidu Logo on the right-hand corner
3. Select Account
4. Scroll down to Personal Information
5. Click Edit next to Billing Information
6. Mark No to the question Do you have a valid EU VAT number (if you are not registered for VAT reverse)
7. Review that the field Tax Identification Number is empty
8. Add your TIN, select your country, and save the changes

I have entered my TIN, but it has not been accepted. Why is this?

Holidu's system checks the format of the ID number you have entered. If your TIN is not accepted, it means that you have provided an invalid number. Please verify the data you have entered and try again. Consult your tax advisor or your country's tax authority if you need confirmation of the correct format for your TIN.

Special Situations

I manage the property as an administrator, and I am responsible for declaring the property's income to the Tax Office under my name. Should I add my details or the property owner's details?

As you are responsible for declaring income and taxes for the property, please include your data for the DAC7 declaration.

I am registered as a company. Will Holidu report the DAC7 data under my personal name or my company's?

If you are registered as a company, have indicated so in your Holidu account, and have provided your company ID number, Holidu will report the data under the company name. Otherwise, the data will be reported under the individual's name.

I am registered as a company. Do I need to provide any additional data?

Yes. Hosts registered as a company also need to provide their business or commercial registration number.

I was previously registered as a company, but this is no longer the case. How can I change this in my Holidu account?

Please reach out to your Account Manager, who will help you change the status of your account. A migration may be necessary. Once this is done, you can follow the guidance in this FAQ to provide your correct DAC7 data.

The email that Holidu sent to me was in my name, however, I am registered as a company. Will you report data under my personal name or that of the company?

If you are registered as a company, have indicated so in your Holidu account, and have provided your company ID number, Holidu will report the data under the company's name. Otherwise, the data will be reported under the individual's name.

Updating Your Information

What should I do if my data changes in the future?

If your data changes, please update this immediately in your Holidu account. You can find details on how to do so by following the steps outlined in the section Where can I enter my TIN above.

Submission and Verification

Holidu sent me a form asking that I fill in data regarding DAC7, but the link doesn't work.

The form only works on the mobile app and on desktop formats. Please make sure that you are using one of those to access the form. Unfortunately, the form is not available on a mobile browser.

The form that Holidu sent shows a different name to the name of the account holder.

Please ensure that you are signed up with the correct email address, which matches the email address for the account. You should then see the correct information.

Will I get a confirmation when I submit all the information via the form?

No, you will not receive a confirmation. However, you can check the data by logging into your Holidu account. If you see the data there, it has been successfully saved.

Data Privacy and Legal Obligations

Why does Holidu need to send this data to the tax authorities?

Holidu is required by law to make this declaration under the DAC7 Directive.

Why is Holidu sharing my personal information with the Tax Office?

Holidu has a legal obligation to do this under the DAC7 Directive.

Will Holidu use my tax information for any other purposes?

No. Holidu will only use your information if there is a legal obligation to do so. It will not be used for any other purpose.