Digital Platform Reporting (DAC7)

DAC7 is a European Union directive aimed at improving tax transparency by requiring digital platforms to report the income earned by sellers using their services. This ensures compliance with tax obligations across member states and supports fair taxation in the digital economy.

https://www.gov.uk/guidance/reporting-rules-for-digital-platforms

Requirements for who needs to report this data and which outlets should be included are changing regularly, please refer to HMRC for the latest information. If you need to complete a DAC7 report for HMRC our reporting can help. You must register for this service with HMRC and be issued a unique reporting ID before generating a report in Redbox.

After selecting a marketplace, you'll see a list of all your outlets. This list shows the information required for each outlet to complete the DAC7 report. To make things easier, we've included filters for Active and Non-Active outlets. However, it's important to submit HMRC data for all outlets that made a sale during your reporting year.

Please ensure all details are correct before submission; this service is only an aid, not legal or tax advice, and you remain responsible for verifying the completeness and accuracy of the data submitted. This includes accurate identifiable data for your outlets, for example, TAX ID.

Once you have completed your identifying information for all outlets you can generate your report. To generate the report you will need your unique reporting ID assigned by the tax authority.

Reports are generated for the specified reporting period and include the following information as an XML file:

• Your marketplace identifying information

• Per outlet:

  • Outlet identifying information and tax ID

  • Order volume per quarter

  • Total order value per quarter

  • Total marketplace fees per quarter

  • Tax on marketplace fees and service charges (if applicable) per quarter

After generating your report, review it carefully for accuracy before submitting it to HMRC. The XML report follows the schema provided by HMRC, so if you make any edits, be sure not to alter the data format, as this will cause the upload to fail.