Green Circle mentioned DAC7 long time ago, and many EU sellers have received emails from Amazon. This time, Amazon has issued another notice: DAC7 Administrative Cooperation Directive Amendment 7 is here!
01
What is the Directive on Administrative Cooperation (DAC7)?
DAC7 is a new tax cooperation measure proposed by the European Commission to strengthen the exchange of information and cooperation between EU member states on the taxation of residents' personal income. The measure aims to better combat tax evasion and avoidance of personal income tax and to promote tax fairness and compliance.
In other words, if a Chinese-registered EU company acts as an Amazon seller and engages in sales in EU countries, it may be affected by DAC7. This is because DAC7 is designed to enhance tax compliance and exchange of information, especially in the area of cross-border e-commerce. Under DAC7, tax authorities in EU member states have the right to request data and transaction information about sellers from e-commerce platforms such as Amazon.
According to the notice issued by Amazon, if you do not provide the requested information in a timely manner, Amazon is obligated to deactivate the offending account until such time as you submit and verify the information successfully.
02
What should I do if I am affected by the DAC7 regulations?
Step 1: In order to comply with the DAC7 obligations, you need to take the following steps:
① Add the required information to the Regulatory Compliance DAC7 portal within 60 days of receiving the initial notice from Amazon. You can view the notification by logging in to the Amazon SellerPlatform on the "Performance Notifications" page.
② Reconfirm all data and reporting every 36 months or each time you initiate a change to any data point in the same portal.
Note: You must add this information to each mall where you have sales activity. The EU is considered a single mall, so if you only sell in EU countries, you only need to do this once in the EU mall of your choice!
Step 2: Provide information to be verified
The information required to be provided varies depending on whether you are conducting business as an entity or as an individual. Please see the table below to see what information you may need to provide:
Step 3: Provide and complete the review
After confirming and submitting information on the Regulatory Compliance DAC7 Portal, Amazon will review and validate the information you provide.
You can check the status of your submission under "Compliance Status" at the top of the portal page.
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