DAC7
This page explains the new EU regulation, namely the 2021/514 (DAC7).
You can read the official EU regulation on the following page on various languages: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021L0514
Legal changes in Europe
The European Union (EU) has introduced DAC7-Directive to ensure greater tax transparency in the digital economy in the EU. DAC7 defines digital platforms as any software that allows sellers to connect with buyers. The implementation of this regulation means that from the 1st of January 2023, platform operators (like our site: SoulCams) will be required to provide information on sellers (models and studios in this case) making use of these platforms. Our site is obliged to send the first report by 31 January, 2024, which is a report based on the performance of the year 2023 and contains the payout amounts the concerned sellers received from us in total.
Who is eligible for DAC 7?
DAC7 applies to two types of businesses: Platform operators that are tax residents or are established in the EU. Foreign platforms that are performing commercial activities within the EU
Who is affected by DAC7?
DAC7 targets reportable sellers, which includes any EU country resident individual or company using an online platform to carry out reportable activity in the EU with sales exceeding EUR2000 or over 30 transactions in one year, as well as non-EU individuals and businesses renting out property located in the EU. It makes no difference to the reporting requirement whether you use the platform as an entrepreneur or as an individual. You get this email from us as you are a concerned partner.
Please note
If you have a standalone model registration or a studio account on our site: SoulCams and this regulation concerns you (see the 'Who is affected by DAC7?' part above) then you need to check and update your data and also provide your tax identification number (TIN) if you are an individual and tax number (VAT number) and Business Registration number in case you are a company, by the 31th of December 2023.
In case you do not provide/add the requested data, your account will still remain active, and you will be able to continue selling your services on our platform, but your earnings will be blocked for payout until you have validated the data as described above.
It is also important to mention that, based on this law, we also have to send the report of those sellers who are not active on our platform any more (either due to passivity and/or closed accounts by the account owner's request) but still concerned for the year of 2023. To understand who is affected, please check out the 'Who is affected by DAC7? question above.
What information you have to provide
If you are an individual:
- First and last name:
- primary address. Please include an accurate address including zip code, town, street name and number, flat number, floor, door, and so on.
- place and date of birth:
- tax identification number (TIN) for individuals:
- the country issuing the tax identification number:
If you are a company:
- Legal name of the company
- Address of the company.
- tax number (VAT number)
- business registration number
Where can I update / provide my data in my SoulCams account?
To check out and update your data if needed, go to menu 'Settings' then click on 'Account / Payment settings' and choose 'Billing' tab.
Reporting
We will need to report this information to the German Tax Authorities, who may share this information with the tax authorities of other EU member states. The directive requires us to report the information about you on an annual basis, no later than January 31st following year. For the year 2023, we have to report the information no later than January 31st, 2024.
If you have any questions, concerns please contact us at support@soulcams.com
