DAC-7, a directive approved by the European Union, extends tax transparency rules to digital platforms, such as Hotmart, by requiring platforms to collect information on reportable sellers (i.e., Creators, Affiliates who use platforms for certain commercial activities and report such information to tax authorities across EU Member States.
This new DAC-7 reporting obligation will take effect as of January 1, 2023, which means that all information collected by Hotmart from that date forward will be shared with the tax authorities of the EU member states. The first report to the Tax Authorities will be submitted in 2024, in relation to the full year of 2023.
Which Hotmart users fall within the scope of DAC-7?
Creators and affiliates, individuals or legal entities, who reside in an EU member state or who are non-EU residents with a permanent establishment and are carrying out commercial activities on the Hotmart starting from Jan. 1, 2023, fall under the scope of the Directive.
What information will Hotmart need to collect and report for DAC-7 purposes?
Here are some of the information Hotmart will be legally obliged to share following DAC7 obligations:
- Full name or legal name
- Primary or registered office address
- Tax ID (TIN and/or VAT number)
- Consideration paid or credited
- Number of transactions carried out through the platform
- Date and place of birth (individuals)
- Bank account number
- EU Member State of residency
Click here for more details about DAC-7.