DAC7 Directive
The EU Directive known as DAC7 was implemented in Germany by the Platforms Tax transparency Act (PStTG), in Spain via Royal Decree No. 117, and Portugal via Law No. 36/2023. The directive requires action by subsidiaries of Manheim Global Management UK Limited (‘MGMUK’) operating in these countries, being Cox Automotive Remarketing GmbH (‘CAR GmbH’) (Germany), Manheim Portugal Lda & Manheim Directo SL and its EU-resident sellers starting 2023. Each entity listed is legally required to report transaction data of its users to its local tax authorities under certain circumstances.
Operators of digital platforms in the European Union, for example online marketplaces such as Manheim Express, Manheim.pt and Manheim.es are legally obliged to comply with rules from the EU Tax Directive known as DAC7. For example in the case of Manheim Express, operated by CAR GmbH, as the online marketplace provider has its registered office in Germany, the German implementation of the DAC7 Directive, the Platform Tax Transparency Act (PStTG), applies.
As a registered platform user, if you reach sales volumes or value defined by DAC7 within a calendar year, the relevant platform operator must report certain personal and transactional data of its users to the local tax authority once a year.
Your data will be reported if you reside in the EU and meet either of the following criteria in a calendar year:
- the consideration from your sales on any one MGMUK subsidiary platform operated by Manheim Express, Manheim.pt or Manheim.es, equals or exceeds €2,000 after deducting fees and commissions or taxes.
- you complete 30 or more transactions, i.e. sales on any of the above listed platforms (cancelled transactions are not included in the calculation)
The total amount of your consideration equals the full amount available for you to receive for your sales transactions, including any shipping costs and taxes that you may receive, such as VAT. Taxes collected and remitted by the relevant legal entity operating the platform, taxes charged on fees, and amounts deducted by the relevant legal entity operating the platform for fees, coupons, cancelled or deleted orders, and returns are excluded from the calculation.
Reports to the tax authority are made annually in January for the previous year. The first reports, however, will be filed at the end of March 2024.
DAC7 does not change your tax obligations. It only addresses the question of whether any MGMUK subsidiaries are obliged to report your data. The introduction of DAC7 does not change the requirement that you remain responsible for clarifying whether your relevant platform sales are subject to tax, and, if applicable, complying with all relevant reporting obligations that may arise from your activities on MGMUK subsidiary platforms. We recommend that you consult a tax advisor if you have any questions about your tax obligations.
Reporting Data
Under DAC7, a platform operator is obligated to report the information via the tax authority of the platform operator’s Member State of residence. For example, for CAR GmbH, this is the German Federal Central Tax Office (BZSt). CAR GmbH will report the respective information to the German
tax authorities for all sellers residing in the EU who have relevant activity during the reporting year. If you reside in another EU country, the German tax authorities will share your information with the relevant tax authorities in your Member State of residence. In the case of Manheim.es and Manheim.pt, relevant information will be shared with the authorities of Spain, under the reliefs of DAC7 allowing for submission of data across a common underlying digital platform.
The following information will be shared with the tax authorities:
Individual sellers (including sole traders)
First and last name
Primary address
Member state where seller is resident
Date of birth
Tax Identification Number
Place of Birth if you do not have Tax Identification Number
VAT identification number, where available
Total amount paid or credited to the seller during each quarter of the period, excluding*:
- fees paid to the relevant MGMUK subsidiary
- any refunds or cancelled orders within the reporting period
- relevant MGMUK subsidiary collected tax
Total number of transactions the total amount corresponds to
Total of fees, commissions or taxes withheld or charged by the platform during each quarter of the period
Number of the bank account to which sales proceeds are paid or credited
- Name on the bank account
Legal entities
Business/Legal name
Primary address
Member state where seller is resident
Business registration number
Tax Number (in some countries)
-
VAT identification number, where available
Total amount paid or credited to the seller during each quarter of the period, excluding*
- fees paid to the relevant MGMUK subsidiary
- any refunds or cancelled orders within the reporting period
- relevant MGMUK subsidiary collected tax
Total number of transactions the total amount corresponds to
Total of fees, commissions or taxes withheld or charged by the platform during each quarter of the period
Number of the bank account to which sales proceeds are paid or credited
- Name on the bank account
Any permanent establishment** through which Relevant Activities are carried out in the Union, where available, indicating each respective Member State, where such a permanent establishment is located
*
* Consequently, the amount the relevant MGMUK subsidiary has to report may differ from the total amount of payments you actually received from the relevant MGMUK subsidiary.
** A permanent establishment is generally a fixed place of business in another European Union Member State (such as the place of business management; branches; offices; repositories; a manufacturing base or workshop, purchasing offices or sales outlets) where you or your agent sell items on the relevant MGMUK subsidiary operated platform. If you are unsure, please reach out to a tax advisor.
Understand what is reported under DAC7/local tax la
If we must report your data under DAC7/local tax law, we will provide you with a copy of the data reported to the tax authorities in a PDF file. There will also be a CSV file available, that will contain the transactions we used to calculate the total numbers in the PDF. The data in the CSV file is only being shared with you and not reported to the tax authorities. As soon as the PDF and CSV files are available, you will receive an email and a notification to your registered email address. You can obtain the copies by requesting from pkwNow.buchhaltung@coxautoinc.com.
Data protection
We protect your personal data through leading edge technical and organisational security measures to minimise risks associated with data loss, misuse, unauthorised access and unauthorised disclosure and alteration. To this end we use firewalls and data encryption, for example, as well as physical access restrictions for our datacenters and authorisation controls for data access. We’ll give you ongoing visibility into any information we collect and the ability to easily update your preferences at any time. You can find further information on our data security in our User Privacy Notice at http://www.manheim-express.eu/data-protection/
Providing your Tax Identification Number (TIN)
Due to the DAC7 Directive rules, as part of the reportable data MGMUK is legally required to collect your Tax Identification Number (TIN) or place of birth if you are an individual and don't have a TIN.
If your information is not stored in your registered platform account yet, once you initially reach €2,000 in consideration or complete 30 transactions, you will also receive an email asking you to provide the respective information.
If for some reason you do not have a TIN, you may be able to apply for one. For more information on how to apply for a TIN, please reach out to local tax authorities or a tax advisor.
If you are required to provide a TIN but don’t provide it, your account may be subject to payout holds or restrictions on selling privileges.
TIP:
Please be aware that the TIN is different to the VAT Identification Number.
Place of birth
Germany
The Steuernummer is for freelancers and businesses. This 10 or 11 digit number has the format “12/345/67890”. It is sometimes presented as “3012034567890” (the first two digits are the number of your Bundesland). It’s also called Steuer-Identnummer or St-Nr.
The VAT number in Germany is called Umsatzsteuer-Identifikationsnummer or USt-ID. It is a 9-digit number starting with the country code (DE for Germany): DE123456789.
Spain & Portugal
Tax identification number or NIF (Número de Identificación Fiscal) is required to conduct any legal financial transactions. The TIN is a unique number that identifies you to the Spanish Tax Office (Agencia Estatal de Administración Tributaria). The NIE format is an X, Y, or Z followed by 7 or 8 digits then another letter (example: X12345678A).
CIF (Certificado de Identificación Fiscal): This is the tax ID number for all companies. It consists of a letter followed by 8 digits (example: B12345678). The letter represents the type of entity. The most common letters are A, B, N, W.
VAT number (Número IVA): This is 'ES' followed by the CIF (example: ES B12345678). If you applied for intracommunitary VAT exemption and your company has been approved, then this number will be listed in the EU VAT registry.
What sellers should know
MGMUK will share your data with the relevant tax authorities when in a calendar year your sales reach €2,000 or more, or you have 30 sales. MGMUK will notify you when you have reached these values. These values only relate to whether MGMUK is required to report your data. This doesn’t change your tax obligations or necessarily means that you must pay taxes on the amounts reported. Whether or which taxes are due because of your sales on the relevant MGMUK subsidiary digital platform depends on your total sales activity, which is not limited to MGMUK subsidiary digital platforms, and whether you are trading privately or commercially.
Whether you are trading privately or commercially does not depend on reaching the values specified by DAC7, based on which MGMUK must report your data. The question of whether you are acting commercially or whether tax obligations result from your sales activity depends on your sales activity as a whole. If you are unsure if your selling activity on MGMUK platforms qualifies as private or commercial or if you have further questions regarding your tax obligations, please contact your tax advisor.
Final word
If you are a seller residing in the EU and your sales in a calendar year exceed €2,000 or you have 30 transactions in that period on a digital platform operated by a MGMUK subsidiary entity, MGMUK is obliged to report certain information to the relevant tax authorities under DAC7. Please provide your Tax Identification Number (TIN) when prompted to do so. DAC7 doesn’t change your existing, or create new tax obligations for you. To find out about your tax obligations, please reach out to a tax advisor.