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DAC7

  1. Overview
  2. Registration obligations for platform operators
  3. Reporting obligations for platform operators
  4. Information to be provided to platform operators by sellers who are individuals
  5. Information to be provided to platform operators by sellers who are entities
  6. Information reported in respect of sellers under DAC7
  7. Sellers that do not have reporting obligations under DAC7
  8. How to file a DAC7 return

Information reported in respect of sellers under DAC7

Platform operators must file an annual return with Revenue on reportable sellers that carried out relevant activities on their platform in the previous year. Revenue will also receive details in respect of Irish sellers using platforms in other Member States annually.

Taxation obligations of sellers using online platforms

Note

DAC7 did not introduce any new tax obligations for sellers carrying out relevant activities. 

If you operate through digital platforms, your tax obligations are the same as if you were operating in any other sector of the economy. You must declare additional income earned. In certain circumstances, sellers may be subject to tax on the income they earned while carrying out relevant activities through digital platforms. 

Tax on sale of goods

Income Tax generally applies to the profits that a person earns from selling goods or supplying services in the course of a trade. The important aspects to this are that:

  • individuals selling personal items which are no longer required are unlikely to be carrying on a trade
  • and
  • Income Tax is not chargeable on the consideration received for goods sold, but on the profits earned. This means that, in computing taxable profits, a deduction can be claimed for the cost of the goods sold and other appropriate expenses.
  • Example 1

    Sarah bought a handbag for a wedding. The handbag is no longer required so she decides to sell it. When purchased new by Sarah, the handbag cost €500. Sarah advertised the handbag for sale on a platform and sold it for €400.

    As Sarah made no profit on the sale of the handbag, she has no additional tax liability. In this case, Sarah is not obliged to declare the sale of good as she did not generate additional income on the sale.

  • Example 2

    John regularly buys and sells items on platforms with a view to making a profit. In the course of the year, he received €3,500 from the sale of items online. The items were originally purchased by John for €2,300. John must declare the profit made of €1,200 (that is, €3,500 - €2,300) on his Income Tax Return for the year.

Individual sellers

If you are an individual seller and a Pay As You Earn (PAYE) employee, you may be taxed on any non-PAYE income earned through the platform. You must declare additional profits earned from selling through online platforms by submitting an Income Tax Return using myAccount.

You must register for self-assessment if:

  • your taxable non-PAYE income exceeds €5,000
  • or
  • your gross non-PAYE income exceeds €30,000.

For further information on declaring extra income earned, please see is your extra income taxable?

Value-Added Tax (VAT)

In relation to VAT, where the income received exceeds the registration thresholds, the person must register for VAT. The current registration thresholds are:

  • €40,000 for the supply of services
  • and
  • €80,000 for the supply of goods.

Next: Sellers that do not have reporting obligations under DAC7

Published: 11 October 2024 Print this page

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