With more than 310 million active accounts worldwide, Amazon is the most important shopping platform for your brand.
Today we're talking about the EU's DAC7 Directive, which now applies to all Amazon sellers based in the EU. Don't panic, we'll enlighten you!
What is this DAC7 directive anyway?
DAC7 stands for “Directive on Administrative Cooperation – 7th amendment” and is a new EU directive. It obliges online sellers to provide more information to the tax authorities. This is intended to create more transparency and prevent tax evasion.
Am I affected?
Yes, if two things are true:
- Your main place of business is in the EU.
- You make more than €2,000 in sales and have over 30 transactions a year.
What do I have to do now?
Quite simply:
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Deposit information: You will receive a notification from Amazon and then have 60 days to enter your data in the DAC7 portal.
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Update data: Every 36 months (or if you make important changes) you must confirm the data again.
What information do I need to provide?
Depending on whether you are acting as an individual or a company:
- Surname and first name or company name
- Main address
- Tax number
- VAT number (if available)
- Company registration number (only for companies)
What happens if I do nothing?
Of course we want to avoid this, but in the worst case your Amazon account will be blocked and your money withheld. So better act fast!
Conclusion
The DAC7 policy comes with a bit more paperwork, but it’s doable. So, keep your eyes open for the notification from Amazon and act fast to avoid trouble.
