DAC7 directive - automatic collection of income information from car owners
What is DAC7?
DAC7 is a new European Union (EU) directive that focuses on enhancing tax transparency and cooperation among EU member states. The primary tenet of DAC7 mandates that all digital platforms are obligated to gather, authenticate, and subsequently report pertinent information concerning their users and the revenue generated on their platforms to the respective tax authorities situated in the individual user's country of residence. GoMore shall report information once per year beginning from the income year 2023. The information will thus be reported for the first time in January 2024.
Who does DAC7 apply to?
DAC7 imposes data collection and reporting obligations on digital platform operators that facilitate online transactions, including sharing economy platforms like GoMore. These operators are required to collect and report information on income generated by sellers using their platforms. Thus, GoMore must collect, verify and report information about users using our platform and report this information to the tax authorities of the relevant EU member state(s) where the individual user resides.
DAC7 applies to all individuals or businesses that use digital platforms to sell goods or services within the EU. Sellers must ensure that they comply with the reporting requirements and taxation obligations set forth by DAC7. As a user generating income via GoMore this means ensuring that you provide accurate and complete information to us.
Will GoMore share my information with EU tax authorities?
Yes, if you generate income from using GoMore’s services, we are, according to the DAC7 directive, obliged to share your information with the local tax authorities of the EU country where you reside. Please note that GoMore will only start sharing information about your transactions from the income year 2023 and onwards. Not for income years prior to that.
Do the DAC7 requirements apply to other digital platforms as well?
Yes, the new DAC7 requirements apply to all digital platform operators, including GoMore, that operate within one of the EU member states.
According to DAC7, digital platform operators are enforced to collect, verify and report information that makes it possible to identify users who sell goods, provide services or rent out immovable property or any mode of transportation via a digital platform.
What information do I need to provide?
The information you need to provide depends on whether you operate on GoMore as a private individual or as a business entity.
For private individuals:
- First and last name
- Primary residence address
- Country of residence
- Date of birth
- Social security number
- EU member state where social security number has been issued
- VAT number (if available)
- Financial account identifier(s) meaning the bank account number or other payment services accounts used to pay out your GoMore earnings
- Name of the holder of the financial account if you do not use your own bank account for your GoMore payouts
For business entities:
- Business or legal name
- Business registration number
- Primary address
- Business ID (Y-tunnus)
- EU member state where business ID (Y-tunnus) has been issued
- Financial account identifier(s) meaning the bank account number or other payment services accounts used to pay out your GoMore earnings
- Name of the holder of the financial account if you do not use your own bank account for your GoMore earnings
GoMore shall collect this information throughout one income year and subsequently relay it to the respective EU tax authorities where our users reside during the subsequent income year. Thus, in the case of the income year 2023, GoMore will report the information in January 2024.
How do I provide the information?
You can provide the required information quickly via our tax formula here.
How can I add multiple co-host information to my account?
If you rent out your car with a co-host and you share the income from renting out the vehicle, you can provide information on the co-host via a tax formula here. Just click on "Add" next to “Extra person” and fill in the information.
What information do co-hosts need to provide?
The co-host has to provide that same information as you provide as the primary car owner. Thus:
- First and last name
- Primary residence address
- Country of residence
- Date of birth
- Social security number
- EU member state where social security number has been issued
- VAT number (if available)
- Financial account identifier(s) meaning the bank account number or other payment services accounts used to pay out your GoMore earnings
- Name of the holder of the financial account if you do not use your own bank account for your GoMore payouts
What do I do if I have both a privately owned and a company owned car for rent on GoMore?
In this case, please fill out on GoMore's website both your personal tax information as well as the company's tax information. We notify the tax administration of the income of your privately owned car together with your personal tax information, and correspondingly the income of your business-owned car together with the company's tax information.
How do I change information if I have made an error in adding my information?
If you have made an error or need to update your information (e.g. if your primary address of residence changed or similar) you can update the tax information copy here. Click on the three “...” next to your name on the tax copy and then “edit”. Please note that GoMore is required to store a copy of all your tax copies for documentation purposes.
Do I need to report the information to EU tax authorities myself?
Yes. GoMore is obliged to collect the information required from you in accordance with the EU directive and report it to the EU tax authorities of your country of residence, once a year starting in 2023. However, you must report your income information to the tax authorities yourself, as Verohallinto does not fill in the income information on your tax declaration on behalf of you. You can read more about the taxation of peer-to-peer car rentals here.
How do I know if you have all the information required by me?
GoMore will reach out to you directly in case we are missing any of the required information from you. You do not have to do anything yourself before we contact you.
What happens if I do not provide the required information?
If you do not provide us with the information we are obliged to collect from you according to the directive, we will send you a reminder to provide us with the required information. If you do not provide us with the requested information, GoMore is required by law to suspend your payouts and block your profile from receiving future bookings. These blocks will of course be removed once you provide us with the information GoMore is obliged to collect and share in accordance with DAC7.
Will my data be shared if I close my account?
You have the option to close your GoMore account at any time. Nevertheless, please note that GoMore is forced by law to retain your data for as long as required to fulfill our obligations under DAC7 and share this information with EU tax authorities in your country of residence, as mandated by the DAC7 EU directive.
Data protection
Legal basis for collecting your data
The newly enacted DAC7 EU directive mandates GoMore to legally collect and share information as prescribed by the directive from all users who generate income through digital platform operators, including GoMore. This requirement extends to all residents of EU member states who generate income through a digital platform operator, as per the directive's stipulation that they are obligated to provide information to the platform operator. Consequently, GoMore gathers your data and reports it in order to fulfill our legal obligations in accordance with DAC7.
Who will receive my data?
GoMore will share your data with The Danish Tax Authorities, who will share the data with the local tax authorities of your EU country of residence.
GDPR deletion rights
You have the option to close your GoMore account at your discretion. Moreover, at any time you can edit the personal information on your profile or request a copy of the information GoMore holds about you. However, please note that GoMore is legally obliged to maintain your data to fulfill our obligations under DAC7 and to facilitate the sharing of this information with the EU tax authorities, as prescribed by the DAC7 EU directive.