DAC7 Explained: What It Means and How OTAs Are Enforcing It

DAC7 is an EU regulation (Council Directive 2021/514) designed to increase tax transparency across digital platforms. In simple terms, it requires platforms like Booking.com, Airbnb, Vrbo, and Expedia to collect and report income data from accommodation providers to tax authorities.

The regulation came into effect on January 1, 2023, and applies to:

• Property managers
• Individual hosts
• Agencies and professional operators
• Anyone earning income via digital platforms in the EU

Under DAC7, platforms must report this data to their local tax authority (e.g. Airbnb reports via Ireland), which is then shared across EU member states

Why DAC7 Exists

The rapid growth of platforms like Airbnb and Booking.com created a gap in tax transparency. Governments often lacked visibility into cross-border rental income.

DAC7 solves this by:

• Creating standardised reporting across the EU
• Enabling automatic data exchange between tax authorities
• Reducing tax evasion and underreporting

In short: 👉 If you earn income via OTAs, tax authorities will now know about it.

What Data Needs to Be Reported?

Platforms are now required to collect and report detailed information about accommodation providers, including:

Host / Company Information

• Full name and address
• Date of birth (for individuals)
• Tax Identification Number (TIN)
• VAT number (if applicable)
• Country of residence

Property-Level Data

• Address of each listing
• Land registration number (if available)
• Number of rental days
• Income generated per listing

Financial Data

• Total earnings
• Platform fees and commissions
• Bank account details

This data is reported annually and shared between EU tax authorities

How OTAs Are Enforcing DAC7

Large OTAs have built DAC7 compliance directly into their onboarding and account management flows.

1. Mandatory Data Collection

Platforms like Airbnb, Booking.com, Vrbo, and Expedia now require hosts to submit tax information before continuing operations.

Typical workflow:

• Notification via email or dashboard
• Prompt to verify business or personal details
• Submission of TIN(s) and property data

2. Enforcement Measures (Critical)

If accommodation partners do not comply, platforms will take action:

• ❌ Payouts can be frozen
• ❌ Listings may be restricted or removed
• ❌ Accounts can be suspended

3. Annual Reporting to Authorities

Each year, OTAs:

• Aggregate host income and activity data
• Submit reports to their designated EU tax authority
• Authorities automatically share this data across countries

This means:
👉 If you operate in multiple countries, all relevant tax offices receive your data

Where to complete it - Booking.com

1. Log into the Booking.com Extranet
2. Navigate to: Compliance Center
   

More information:  https://partner.booking.com/en-us/help/legal-security/regulatory-compliance/everything-you-need-know-about-compliance-center

Where to complete it - Airbnb

1. Log into the Airbnb Host Account
2. Navigate to: Account -> Taxes

More information: https://www.airbnb.com/help/article/3268#provide-info

Where to complete it - Vrbo

1. Log into the Vrbo Dashboard
2. Navigate to: Account → Tax Profile / Tax Interview

More information: https://help.vrbo.com/articles/Add-DAC-7-required-information-to-your-property

Where to complete it - Expedia

1. Log into Expedia Partner Central
2. Navigate to: Property Details -> Property Admin - Regulatory Requirements

More information: https://apps.expediapartnercentral.com/lodging/help/help-article/property/property-administration/add-dac-7-required-information-to-your-property?domain=HOTEL