Overview

The Directive on Administrative Cooperation, 7th amendment — commonly known as DAC7 — is a European Union regulation that directly impacts Amazon sellers operating in EU member states. Under EU Directive 2021/514, online marketplaces like Amazon are required to collect, verify, and report seller information and financial data to competent tax authorities across the EU. Sellers who fail to provide the required information risk having their accounts deactivated.

Key Points / What Sellers Need to Know

• Mandatory information collection — Amazon must gather additional details from affected sellers, including Tax Identification Numbers (TINs), company registration numbers, and details about permanent establishments in EU countries.
• Verification against official databases — Amazon is required to verify the information sellers provide by cross-referencing it with the databases maintained by relevant tax authorities in each EU member state.
• Reporting to tax authorities — Amazon reports verified seller data, along with details on earnings, fees charged, and banking information, directly to EU tax authorities on an annual basis.
• Account deactivation for non-compliance — Sellers who do not provide the required information within 60 days of their first notification will have their accounts deactivated until the data is submitted and verified.
• Reporting thresholds apply — Only sellers who complete a minimum of 30 transactions or earn at least €2,000 in total consideration per year are subject to DAC7 reporting.

What Information Does Amazon Report?

Amazon is required to share several categories of seller data with EU tax authorities. For individual sellers, this includes first and last name, business address, all EU Tax Identification Numbers along with the details of the issuing authority, the VAT Registration Number associated with the business address, and date of birth where applicable. For business entities, the legal business name and related identifiers are reported instead.

Beyond personal and business identifiers, Amazon must also report financial account details, specifically the bank accounts or other payment accounts to which seller funds are transferred. This ensures that tax authorities have full visibility into the payment chain.