Attention, this is a very important message and should not be missed! All the important information is right in the article. 👀
What do you learn in this article?
- What is DAC7?
- Who will be affected?
- Frequently asked questions and answers.
What is DAC7?
DAC7 (Directive on Administrative Cooperation 7) is a legal directive of the European Union (valid from 1 January 2023), which was introduced to increase transparency and tax fairness in the field of e-commerce. ⚖️ This directive is aimed at online platforms that facilitate the sale of goods or services and provides platforms and financial institutions with new obligations in collecting and sharing transaction information. Then, online platforms will be obliged to collect information about sellers on their platforms. This includes identifying data and information on the earnings achieved by sellers through the platform. 🪪
Who will be affected?
Under this directive, we are required to disclose informatiion to tge Revenue about sellers who have 30 or more completed orders/transactions in a calendar year and who have made a profit of at least €2,000 during the calendar year, which is equivalent to approximately CZK 48,000.
This reporting will not include any customer data.
Frequently asked questions and answers
🟣 Data of sellers that we have to report to the Financial Authority:
- Name and surname
- Date of birth
- Address of residence
- Tax identification number or place of birth if no tax identification number
- VAT number of the VAT payer
- Bank account to which the order money is paid
- Who owns the bank account
🟣 Information about earnings
- We will report to the Finance Authority - 30 or more completed orders/transactions and the total profit for one calendar year.
The information will be reported to the Financial Authority and will not be linked to the seller's profile or Glamino's website. Reporting will not include names, descriptions or details of orders or their contents. All affected sellers who will be part of the report will be notified before the data is submitted to the Financial Authority. This report must be submitted once a year, in January, for the previous calendar year.
🟣 How is it with anonymity?
We will not share your data with the customer. Your provision of services on the Glamino platform is completely anonymous to the customer. The customer only knows what you have on your profile - your nickname and what you have listed in the description about yourself. However, we need to know and record your information. By registering with us, you have entered into a legal relationship with us. The main reason for this is so that we can pay you money, so by law we have to keep a record of your details. Your data is completely safe with us, we will never publish it or pass it on to a customer.
🟣 Who do we need to include in the report?
The report applies to sellers who have 30 or more completed orders/transactions in a calendar year and have a total profit of more than EUR 2 000 in one calendar year. This is approximately CZK 48 000. The report will not contain any customer data.
🟣 Do I need a business license to sell on Glamino?
No, you don't have to have a trade. Glamino does not require a trade to register or sell. However, you should find out your tax obligations under the law. A trade would be required when it is a continuous activity for profit. If in doubt, consult a qualified professional.
🟣 How about paying taxes, health and social insurance ?
Whether you have to pay tax, health and national insurance depends on how much you earn and on your other income and other factors. That is, whether you are - a student, a salaried employee, on maternity/parental leave, self-employed, etc.). If this is the case, we also recommend that you contact a professional or the relevant authority.
Please note that all income is subject to income tax and it is your responsibility to control and report it. We will send the report to the Financial Authority for 2023 by the end of January 2024.
