EU Sellers Must Submit DAC7 Tax Information Within 60 Days or Risk Account Deactivation
Amazon now enforces the EU DAC7 directive, requiring sellers with an EU address to submit tax data within 60 days of the first DAC7 notice posted in Seller Central. The threshold is €2,000 in gross sales or 30 transactions in the prior year, and failure triggers account deactivation and frozen funds.
Overview
Amazon is now enforcing the EU’s DAC7 tax‑transparency directive, obligating sellers with an EU‑based business address to upload detailed tax and revenue data through Seller Central. The compliance window opens when Amazon issues the first notification and closes after 60 days; missing the deadline can trigger account suspension and frozen funds.
Key Points
- 60‑Day compliance window — The countdown starts on the date Amazon posts the first DAC7 notice in Seller Central, not when the seller reads the email; failure to act within this period leads to enforcement.
- Low eligibility thresholds — Sellers who generated €2,000 + in gross sales or completed 30 + transactions in the prior calendar year must submit the required information, capturing the majority of active EU merchants.
- All marketplace coverage — Information must be provided for every Amazon store where the seller operates, even if sales occur on non‑EU sites such as Amazon.com or Amazon.co.uk.
- Data points required — Amazon will ask for legal name, primary EU address, tax‑ID, VAT number (if any), date of birth for individuals, resident EU member state, total platform revenue, transaction count, and Amazon‑deducted fees.
- Consequences of non‑compliance — Accounts that do not meet the deadline can be deactivated across all stores, and any unsettled balances will be held until the data is verified.
How DAC7 Reporting Works
- Notification receipt — Amazon posts a DAC7 alert in the “Performance & Account Health” area of Seller Central; for example, a French‑based seller sees a banner on March 1 stating the 60‑day deadline.
- Eligibility check — The seller reviews the previous year’s sales dashboard; a German seller discovers €3,500 in sales and 45 orders, which exceeds the €2,000/30‑order threshold.
- Data collection — The seller gathers required details, such as the company’s VAT number (DE123456789) and personal date of birth (12 May 1985) for an individual account.
- Submission via compliance hub — Using the “Tax Information” tab, the seller enters each field; for instance, the Italian seller uploads a scanned copy of the fiscal code and confirms €2,150 in total revenue.
Analysis & Recommendations
Why This Matters
Non‑compliance can lead to immediate suspension of all Amazon stores and hold of any unsettled balances, disrupting cash flow. Sellers meeting the €2,000/30‑order threshold must update legal name, VAT, DOB, revenue, and fees across every marketplace via the Tax Information tab.
Key Takeaways
- 60‑day compliance window starts when Amazon posts the first DAC7 alert in Seller Central, not when the email is read.
- Eligibility applies to sellers with ≥ €2,000 gross sales or ≥ 30 transactions in the previous calendar year.
- All Amazon marketplaces linked to the seller account must report the same tax data, even for non‑EU sites.
- Missing the deadline results in account deactivation across all stores and holds on any outstanding balances.
Recommended Actions
- →Log into Seller Central > Performance & Account Health, locate the DAC7 notification banner, and note the posted deadline date.
- →Run the Payments report for the last calendar year, verify if sales ≥ €2,000 or orders ≥ 30, and determine eligibility.
- →Navigate to Settings > Tax Information, enter required fields (legal name, EU address, tax‑ID/VAT, DOB, revenue, fees) and upload supporting docume...
Comments
Join the discussion
Log in or create an account to share your thoughts on this update.
No comments yet. Be the first to share your thoughts!