Overview

Amazon is now enforcing the European Union’s DAC7 tax‑reporting rule, which obliges digital marketplaces to gather and forward seller revenue and business data to EU tax authorities each year. Sellers who are based in the EU and either exceed €2,000 in gross sales or complete more than 30 transactions in a calendar year must verify their information through Amazon’s DAC7 portal within 60 days of receiving a notice, or risk having their accounts deactivated and payments frozen worldwide.

Key Points

• DAC7 legal requirement — The EU directive mandates that online platforms submit detailed seller information to each member‑state’s tax authority on an annual basis.
• Threshold for coverage — The rule applies to any EU‑based seller who records €2,000 + in gross sales or processes 30 + transactions during the year; a German toy seller with €2,500 in sales and 45 orders would be subject.
• One submission for the whole EU — Amazon treats the entire European region as a single store, allowing a French seller to file the data on any EU marketplace (e.g., Amazon.fr) and have it count for all EU sites.
• 60‑day compliance window — After Amazon sends a notification, sellers have exactly 60 days to log into the DAC7 portal, update their details, and certify accuracy; missing the deadline triggers automatic account suspension.
• Renewal every 36 months — Once a seller has submitted the required data, Amazon will ask for re‑confirmation after three years, and immediately if any material change (such as a new VAT number) occurs.
• Global enforcement — Non‑compliance does not only affect EU storefronts; Amazon will block payouts and freeze balances on all of a seller’s accounts, including Amazon.com and Amazon.ca.

How DAC7 Reporting Works

1. Notification delivery — Amazon sends an email and a Seller Central alert to every qualifying EU seller. Example: A Dutch apparel vendor receives a message on March 1 stating that the DAC7 deadline is May 1.
2. Portal access — The seller clicks the link in the alert, which opens the DAC7 compliance portal where all required fields are displayed. : The vendor logs in and sees sections for legal name, address, VAT ID, and entity type.