What is DAC7?
DAC7 is 7th edition of the "Directive on Administrative Co-operation in the field of taxation (2011/16)", implemented by the UK’s HMRC to enhance tax transparency and compliance within the digital economy.
This regulation requires digital platforms to report the income earned by sellers who use their services. DAC7 covers income from activities such as:
- Renting properties
- Selling goods
- Providing services
The directive's primary goal is to prevent tax evasion by ensuring that all income generated through digital platforms is accurately reported and taxed accordingly.
What does this mean for Anytime Booking clients?
For businesses using Anytime Booking, you will be classed as a ‘digital platform’ for the purposes of the DAC7 regulations if you collect income on behalf of others who own the asset being rented. i.e. Agencies that sell bookings on behalf of, and pay rental income to, owners.
Anytime Booking provides features to assist agencies in collecting the necessary data, including:
- Individual owner details, such as DOB, National Insurance number etc
- Business owner details, such as Company Registration number, VAT number etc
To comply with HMRC regulations, you will need a report, detailing each owner’s details and income, in a format called XML, which Anytime Booking’s software will export. This report then needs to be uploaded to the HMRC online gateway.
For the report due by 31st January 2025, agencies are required to have collected details for all owners that they took on as clients during the 2024 calendar year. This reduces the data gathering workload in the first year of reporting. From 31st January 2026, all owners that have been active in the year need to be included. To learn more about the reporting rules, please refer to the HMRC website here or contact your tax advisor.
Please note that whilst Anytime Booking can help you collect and report the necessary information, it is your responsibility to ensure the data is both complete and correct before any submission to HMRC.
To find out more on how to fulfil DAC7 reporting from the Anytime BMS (booking management system) or the Owners Portal, please read the articles below.