DAC7
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      DAC7

      Directive on Administrative Co-operation (“DAC7”) in the field of taxation.

      All things DAC7: Directive on Administrative Co-operation between EU Member States 

       

      Since 1st January 2023, all EU Member States implemented rules regarding the Directive on Administrative Co-operation (“DAC7”) in the field of taxation. 

      DAC7 (Council Directive (EU) 2021/514) includes the obligation for digital platforms, such as Hostelworld, to report on their sellers (revenue earned from hostels and other properties listed) and a legal framework to conduct joint audits with EU Member States. Hostelworld report this information annually, by submitting relevant information annually to the Irish Revenue Commissioners, who can then share it with tax authorities in other EU Member States. 

       

      If you fail to provide Hostelworld with the necessary tax information, we may need to delist your property.

       

      What’s in this article: 

      • General information about DAC7
      • Who is in scope under DAC7
      • Information required under DAC7
      • Common FAQs
      • How we collect and share DAC7 data 

       

      General information about DAC7

       

      DAC7 is an EU directive which aims to improve tax co-operation between EU Member states pertaining to sellers on digital platforms, including transparency on revenues earned by said sellers by simplifying the collection of taxes by local tax authorities.

      We are required under EU legislation to collect and report the relevant information in relation to your property to our Irish tax authorities, the Irish Revenue Commissioners. Failure to provide Hostelworld with the relevant tax information will lead to your property being delisted from our platform.

       

      General information about DAC7 

      DAC7 is an EU directive to improve tax co-operation between EU Member States pertaining to sellers on digital platforms, including transparency on revenue earned by said sellers by simplifying the collection of taxes by local tax authorities. 

      We are required under EU legislation to collect and report the relevant information in relation to your property to our Irish tax authorities, the Irish Revenue Commissioners.  

      Failure to provide Hostelworld with the relevant tax information will lead to your property being delisted from our platform. 

       

      Who is in scope under DAC7 

      DAC7 applies to a platform user who receives income from renting accommodation, where either the user is a resident of an EU Member State or the income is received from a property listing in the EU. 

      For DAC7 purposes, platform users are defined as entities or individuals conducting business through Hostelworld.com’s platform with whom Hostelworld.com have contractual relationships with. 

      List of EU Member States:

      • Austria
      • Belgium
      • Bulgaria
      • Croatia
      • Cyprus* *the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus exercises effective control
      • Czech Republic
      • Denmark
      • Estonia
      • Finland
      • France
      • Germany
      • Greece
      • Hungary
      • Ireland
      • Italy
      • Latvia
      • Lithuania
      • Luxembourg
      • Malta
      • The Netherlands
      • Poland
      • Portugal
      • Romania
      • Slovakia
      • Slovenia
      • Spain
      • Sweden

       

      List of EU territories:

      • Åland Islands
      • Azores
      • Canary Islands
      • French Guiana
      • Gibraltar
      • Guadeloupe
      • Madeira
      • Martinique
      • Mayotte
      • Réunion
      • Saint Martin

       

      Information required under DAC7

      • Property name (pre-filled from your contract with Hostelworld.com Limited) 
      • The address of the property being rented out
      • Value Added Tax (VAT) Number
      • Tax Identification Number (TIN)
      • Business Registration Number
      • Property revenue (consideration) received from the booker (without Hostelworld’s commission/deposit amount) 
          • Hostelworld will be reporting relates to all bookings made between 1st January to 31st December in the calendar year for all booking types, net of all cancellations made for the free cancellation booking product from 1st January to 31st December of the calendar year, if the cancellation was made within the allowable window. 
          • Outside of valid free cancellation bookings, Hostelworld does not have the ability to monitor late cancellations or no-shows, and therefore, these will not be reflected as cancellations in the reporting. 
      • Hostelworld’s commission
          • Hostelworld’s commission is the fee for the provision of software and data processing services to the seller (property) of the accommodation for all booking types. 
          • Hostelworld reports the commission earned per booking made between 1st January to 31st December in the calendar year for all booking types, net of all cancellations made for the free cancellation booking product from 1st January to 31st December of the calendar year, if the cancellation was made within the allowable window. 
      • Number of bookings
      • Number of rented days / bednights 

       

      FAQs

      What is a Value Added Tax (‘VAT’) Number? 

      A VAT number is a unique identifier issued by local tax authorities to businesses which are registered for VAT. You can verify the validity of a VAT number issued by any Member State here.

      What is a Business Registration Number (‘BRN’)? 

      A BRN is a unique identifier assigned when you register your business, typically provided by a Chamber of Commerce or a national company registry depending on the country where your business is registered. 

      What is a Tax Identification Number (‘TIN’)? 

      A TIN is a unique number issued by local tax authorities. It should generally be used for business purposes. Individual (owner) TINs apply where a business TIN is not available. 

      See below a list of each EU Member country’s expected tax ID format for Individuals and for Businesses as per the OECD guidelines:

      Country 

      Known as 

      Individual 

      Business 

      Austria 

      ·       Tax Identification Number 

      9 digits 

      9 digits 

      Belgium 

      ·       National Number 

      ·       Business Identification Number 

      ·       Belgian Company Number 

       11 digits 

      10 digits 

      Bulgaria 

      ·       Unified Civil Number 

      ·       Personal Foreigner's Number 

      ·       Unified Identification Code 

      ·       Unified Identification Code of BULSTAT 

      10 digits 

      9 digits 

      Croatia 

      ·       Personal Identification Number 

      11 digits 

      11 digits 

      Republic of Cyprus 

      ·       Tax Identification Code 

      8 digits + 1 letter 

      8 digits + 1 letter 

      Czech Republic 

      ·       Personal Identification Number 

      9 or 10 digits 

      “CZ” + 8 digits to 10 digits 

      Denmark 

      ·       Central Person Registration Number 

      ·       CVR Number 

      ·       SE Number 

      10 digits 

      8 digits 

      Estonia 

      ·       Personal Code 

      ·       Unique Registration Code 

      11 digits 

      8 digits 

      Finland 

      ·       Social Security Number 

      ·       Business Identity Code 

      6 digits + (+ or - or “A”) + 3 digits + 1 digit or letter 

      7 digits + “-” + 1 digit 

      France 

      ·       Tax Identification Number 

      ·       SIREN Business identification Number 

      13 digits (first digit is always 0, 1, 2, or 3) 

      9 digits 

      Germany 

      ·       Identification Number 

      ·       Tax Number 

      ·       Tax Identification Number 

      11 digits 

      10 digits to 13 digits 

      Greece 

      ·       Tax Identification Number 

      9 digits 

      9 digits 

      Hungary 

      ·       Tax Identification Number 

      ·       Tax Number 

      10 digits 

      11 digits 

      Ireland 

      ·       Personal Public Service Number 

      ·       Tax Reference Number 

      ·       CHY Number 

      7 digits + 1 letter 

      7 digits + 2 letter 

      7 digits + 1 letter 

      7 digits + 2 letter 

      “CHY” + 1 to 5 digits 

      Italy 

      ·       Fiscal Code 

      ·       Tax Identification Number 

      6 letters + 2 digits + 1 letter + 2 digits + 1 letter + 3 digits + 1 letter 

      11 digits 

      Latvia 

      ·       Personal Identity Number 

      ·       Tax Identification Number 

      11 digits 

      “9000” + 7 digits 

      “4000” + 7 digits 

      “5000” + 7 digits 

      Lithuania 

      ·       Tax Identification Number 

      ·       Tax Registration Number 

      10 digits or 11 digits 

      9 digits or 10 digits 

      Luxembourg 

      ·       National Identification Number 

      ·       National Identifier 

      13 digits 

      11 digits 

      Malta 

      ·       Identity Card Number 

      ·       Unique Taxpayer Reference Number 

      7 digits + 1 letter 

      9 digits 

      9 digits 

      Netherlands 

      ·       Tax Identification Number 

      9 digits 

      9 digits 

      Poland 

      ·       Polish Resident Identification Number 

      ·       Tax Identification Number 

      10 to 11 digits 

      10 digits 

      Portugal 

      ·       Tax Identification Number 

      9 digits 

      9 digits 

      Romania 

      ·       Tax Identification Number 

      13 digits 

      2 digits to 10 digits 

      Slovakia 

      ·       Tax Identification Number 

      ·       Unique Personal Identification Number 

      10 digits 

      10 digits 

      Slovenia 

      ·       SI Tax Number 

      8 digits 

      8 digits 

      Spain 

      ·       National Identification Document 

      ·       Foreigner Identification Document 

      ·       Tax Identification Number 

      8 digits + 1 letter 

      “L” + 7 digits + 1 letter 

      “K” + 7 digits + 1 letter 

      “X” + 7 digits + 1 letter 

      “Y” + 7 digits + 1 letter 

      “Z” + 7 digits + 1 letter 

      “M” + 7 digits + 1 letter 

      1 letter + 8 digits 

      1 letter + 7 digits + 1 letter 

      Sweden 

      ·       Social Security Number 

      ·       Co-ordination Number 

      ·       Organization Number 

      10 digits 

      10 digits 

       

      Will anything change in how taxes are processed due to DAC7 data reporting obligations?

      DAC7 doesn’t require any changes in the way taxes are processed, neither for the commission charged by Hostelworld.com nor for local taxes you charge travellers. At the same time, we expect that the local tax authorities will use data provided by platforms to evaluate the correctness and completeness of your tax submissions.  

      I have multiple property listings in one country, what information do I need to provide?

      DAC7 requires taxpayer information to be provided for each listing. You can assign the same taxpayer information to all your listings or provide different information for each, depending on your business structure and the local tax identifier information.  

      I have listings in multiple countries, what Information do I need to provide?

      DAC7 requires taxpayer information to be provided for each listing. It is expected that you will have relevant taxpayer information, such as a TIN, for each country in which you host property listings, or are a resident. 

      Note: If you list properties within and outside of the EU, the request for taxpayer information under DAC7 is independent of taxpayer information obligations you may have in other countries. 

      If I don’t provide my taxpayer information and assign it to my listings, what will Hostelworld do?

      If you do not provide us with the relevant taxpayer information, we will be forced to delist you from our platform. 

      If I don’t provide my taxpayer information and assign to listings, will Hostelworld.com share my data?

      Yes. We will share all of the relevant information that we have, to the extent required by DAC7, in addition to taking the required enforcement measures. 

      If I am not EU resident, will my data be shared?

      Yes, if you have a property listing in the EU. DAC7 applies to any platform user with an EU property listing, regardless of where the platform user is resident. 

       

      What are the exclusions to DAC7?

       Entities excluded from the scope of DAC7:

      • Governmental entities
      • Entities listed on a stock exchange  

      Services excluded from the scope of DAC7:

      For Accommodations: More than 2,000 bookings per calendar year on the Reporting Platform (Hostelworld.com). If you have an EU property listing with more than 2,000 bookings per calendar year as of December 31, your listing will be excluded from Hostelworld’s DAC7 reporting. If you have other property listings that did not reach 2,000 bookings (per listing, per calendar year), these will be included in Hostelworld’s DAC7 reporting. 

      The 2,000 bookings threshold applies individually to each Reporting Platform and is not aggregated across systems. Exceeding 2,000 bookings on Hostelworld’s platform does not result in exclusion from other Reporting Platforms DAC7 submission.  


      How we collect and share DAC7 data 

      Legal basis for collecting data under DAC7

      DAC7 (Council Directive (EU) 2021/514) places a legal obligation on Hostelworld.com to share the data of platform users who receive income from renting properties in circumstances where either the user is a resident of an EU Member State, or the income is received from a property listing in the EU. 

      We are collecting your data in order to allow us to comply with our legal obligations under DAC7. 

       

      Who will Hostelworld.com share my data with?

      Hostelworld.com will share your data with the Irish Revenue Commissioners for DAC7 compliance purposes. The Irish Revenue Commissioners will then share this data with the tax authorities in the EU Member State(s) where you are resident and/or where your Hostelworld.com property listing(s) are located. 

       

      If I remove my property or my property is deactivated from Hostelworld.com, will my information still be shared?

      If you make transactions within a reporting period your data will still be shared with the Irish Revenue Commissioners for DAC7 purposes, as required for all hostel partners with properties within EU Member States transacting through Hostelworld.com