DAC7

What is DAC7?

On January 1, 2023, the European Union enacted a new directive, known as DAC7, aimed at improving tax transparency and promoting collaboration among member states.

Under the mandates of DAC7, all digital platforms are obligated to gather, verify, and disclose crucial tax-related information pertaining to their users, as well as the revenue generated by these users via the platform. As a result, beginning in 2023, Dreaminfluencers ApS is required to report user data to the Danish Tax Administration in compliance with the stipulations set forth in DAC7.

What is considered “revenue generated”?

We are required to report all revenue earned by sellers on our platform, a seller being an Influencer. As per the definition of ‘revenue’ by DAC7, it relates to all transactions of goods or payments from a buyer (a Brand) to a seller (an Influencer). Hence, this covers both physical goods, products and payments. 

Understanding DAC7

DAC7 introduces a directive within the European Union aimed at enforcing tax transparency and enhancing collaboration between EU countries. A fundamental aspect of DAC7 is that it obligates digital platforms to accumulate, verify, and report critical data regarding their users and the profits generated through their platforms to the Danish tax authorities. Starting from the 2023 income year, Dreaminfluencers is mandated to annually report this data, beginning with the first report in January 2024.

Scope of DAC7

DAC7 places data gathering and reporting duties on operators of digital platforms facilitating online transactions, including Influencer Marketing platforms such as Dreaminfluencers ApS. These operators must gather and report details on the income earned by sellers on their platforms. Thus, Dreaminfluencers ApS is tasked with collecting, verifying, and reporting information about its users to the tax authorities in the relevant EU member states.

DAC7's applicability extends to all individuals or entities using digital platforms to sell goods or services within the EU. Sellers are responsible for complying with DAC7's reporting and tax obligations. As a user generating income via Dreaminfluencers ApS, this entails providing accurate and comprehensive information to us.

Sharing Information with EU Tax Authorities

Dreaminfluencers ApS is required to share user information with the Danish tax authorities if you earn income using our services, as stipulated by the DAC7 directive. This information sharing will commence from the 2023 income year onwards, and not for previous income years.

DAC7 and Other Digital Platforms

The DAC7 requirements are applicable to all digital platform operators, including Dreaminfluencers ApS, operating in any EU member state. Under DAC7, digital platform operators must collect, verify, and report data enabling the identification of users who sell goods, offer services, or rent out property or transportation through a digital platform.

Required Information

The information you need to provide to Dreaminfluencers ApS is as follows:

• Full name
• Home address
• Country of domicile
• Birth date
• Tax identification number (e.g., CPR-number)
• Issuing EU state of the tax identification number
• VAT number (if applicable)
• Financial account details, including bank or payment service accounts for Dreaminfluencers ApS earnings
• Name of the financial account holder if it's not your account

Dreaminfluencers ApS will collect this data over an income year and relay it to the Danish tax authorities. For the 2023 income year, this means reporting in January 2024.

Submitting Information

You can submit the required information through our online tax form.

Updating Incorrect Information

If you need to correct or update any provided information (like a change in residence address), you will need to write a formal request to contact@dreaminfluence.com. Dreaminfluencers ApS is mandated to keep a record of all your tax information for documentation purposes.

Reporting Obligations to EU Tax Authorities

You are still required to personally report relevant information to the respective tax authorities in your home country, as usual. This also entails reporting relevant income earned through the Dreaminfluencers ApS platform.

Verification of Information Compliance

Dreaminfluencers ApS will directly contact you if we require additional information to comply with DAC7. You don't need to take any action unless we reach out to you.

Consequences of Non-Compliance

Failing to provide the required information will lead Dreaminfluencers ApS to remind you to do so. Continued non-compliance will result in suspension of payouts and restriction of your profile from future collaborations. These restrictions will be lifted once you comply with the required information submission under DAC7.

Account Closure and Data Sharing

Closing your Dreaminfluencers ApS account is an option available to you at any time. However, Dreaminfluencers ApS is legally bound to retain and share your data with the Danish tax authorities as per DAC7 regulations, even after account closure.

Legal Grounds for Data Collection

Under DAC7, Dreaminfluencers ApS is legally obligated to collect and share user data. This applies to all EU residents earning through digital platforms. This collection and reporting are part of our legal obligations under DAC7.

Data Recipients

Your data will be shared with The Danish Tax Authorities, who will then share it with the tax authorities in your EU country of residence.

Rights under GDPR

You can close your Dreaminfluencers ApS account, edit your personal information, or request a copy of the data we hold about you. However, due to our legal obligations under DAC7, Dreaminfluencers ApS must maintain your data for sharing with EU tax authorities.