DAC7 is a European Union directive (LINK) that requires online platforms like Yaga, Bolt, Osta.ee, etc., to report information about their users' sales and income to the tax authorities
PS! The sale of personal items is not subject to income tax. Therefore, if you’re selling items you purchased for personal use, you don’t need to pay income tax on those transactions. Filling out the DAC7 form does not create any additional tax obligations. You can read more about declaring and taxing income from online sales HERE.
Yaga is legally required to collect and submit data to the Estonian Tax and Customs Board once a year regarding Sellers operating on the platform and their earned income if a user reaches 30 sales or more per calendar year or if the Seller's sales revenue exceeds €2000 per year. If you meet these criteria as a Seller, it is mandatory for you to submit and confirm your details by filling out the DAC7 form.
For the first time, Yaga must submit information about income earned in 2023 to the Tax and Customs Board by January 31, 2024.
An exception to this reporting obligation applies if the Seller has conducted fewer than 30 transactions via the platform in the current calendar year and the total amount paid or credited to them does not exceed €2000 (according to § 2022(3)(4) of the Tax Information Exchange Act).
The exception does not apply if:
The Seller has conducted fewer than 30 transactions, but the total amount paid or credited exceeds €2000;
The Seller has made more than 30 transactions (regardless of whether the amount received exceeds €2000 or not).
For individual Sellers, Yaga must collect and submit the following data to the Tax and Customs Board:
First and last name;
Date of birth;
Address in the country or jurisdiction of primary residence;
Personal identification code, if available, and any other taxpayer identification numbers or their functional equivalents, along with the issuing country or jurisdiction;
VAT number, if available;
If the Seller has neither a personal ID nor a taxpayer ID, then information about their country or jurisdiction of birth must be collected.
If the individual Seller is exempt from reporting, their data will not be collected.
For legal entities and legal structures, Yaga must collect and submit the following information to the Tax and Customs Board:
Business name;
Registered address;
Business registry code, if available;
Permanent establishment address in the EU where the relevant activity takes place, if applicable, and the Member State where the establishment is located;
VAT number, if available;
Any other taxpayer identification numbers. If none exist, their functional equivalents must be provided, along with the issuing country or jurisdiction.
If the legal entity or structure is exempt from reporting, their data will not be collected.
Yaga must collect and submit the following information on behalf of the Seller to the Tax and Customs Board:
The bank account number to which payouts have been made. If the account holder’s name differs from the Seller's name, the account holder’s name is also submitted.
The total amount of payments made to the Seller and the total number of transactions these payments cover, for each quarter. This includes all service fees, other charges, etc., withheld by the platform operator.
Do I have to fill in the DAC7 form?
If you meet the DAC7 criteria as a Seller - meaning you’ve made 30 or more sales or earned over €2000 from sales on Yaga during a calendar year, then filling out the DAC7 form is mandatory for you.
How will I know if I need to fill out the DAC7 form and where can I do it?
If you meet the above criteria, we will contact you within Yaga via notifications and via the email address linked to your Yaga account. You can fill out the DAC7 form directly in Yaga by following this link: https://www.yaga.ee/my/settings/profile/DAC7
The DAC7 form must be submitted within 30 days of receiving the notification to fill it out.
What happens if I don’t complete the DAC7 form?
If you meet the DAC7 criteria as a Seller but don’t fill in the form, you won’t be able to withdraw funds from your Yaga account until the DAC7 form is completed.
Read more about the Automatic exchange of platform-related information (DAC7) on the Estonian Tax and Customs Board website (LINK).