Overview

Amazon is now enforcing the EU’s DAC7 tax‑reporting rule, obligating sellers who meet modest sales or transaction thresholds to upload verified tax and business details through Seller Central. Failure to comply can trigger full account suspension and withholding of pending funds, making immediate action essential for any EU‑based merchant.

Key Points

• Threshold trigger — Sellers resident in the EU who generate €2,000 + in sales or complete 30 + orders in a calendar year must submit DAC7 data.
• Deadline for existing sellers — The cut‑off for sellers already above the thresholds was 1 Oct 2023; missing this date leads to deactivation.
• 60‑day window for new qualifiers — Sellers who cross the €2,000 or 30‑transaction mark after the initial deadline have two months from Amazon’s first notification to provide the required information.
• Data categories required — Legal name, primary address, tax identification number, VAT number (if applicable), date of birth for individuals, corporate registration details, and bank account information must be uploaded.
• Scope beyond EU accounts — Amazon expects the same documentation for every seller account a user holds, even those operating outside the European Union.
• Ongoing obligation — The submission is not a one‑off task; sellers must keep the information current each year to remain compliant.

How DAC7 Compliance Works

1. Receive Amazon’s DAC7 notification — An EU seller who reaches €2,000 in sales or 30 transactions receives an alert in Seller Central. Example: A French artisan who sells €2,300 worth of handmade candles across three months sees a red banner prompting DAC7 upload.
2. Gather required documentation — The seller collects personal or corporate tax IDs, VAT registration certificates, business registration extracts, and the bank account details used for payouts. Example: The French artisan locates her personal TIN, VAT number, and a PDF of her company’s registration from the Chamber of Commerce.