eBay DAC7 reporting is the EU rule that makes eBay collect tax and identity details from EU-resident sellers and report their yearly sales to tax authorities. The contracting company, eBay GmbH, reports under Germany’s Platform Tax Transparency Act. Reach 30 sales or 2,000 euros in a calendar year and eBay asks for your tax identification number, date of birth, address and bank details through a banner in your seller dashboard and an email. Leave the request unanswered and eBay states your payouts may be held or your selling privileges restricted. One clean, matching set of details, entered once and kept current, closes the request and keeps the money moving.
What eBay DAC7 Reporting Is
DAC7 is the short name for Council Directive (EU) 2021/514, which amended the EU’s directive on administrative cooperation in tax matters. It requires online platforms to perform due diligence on the sellers who use them and to report those sellers’ income to tax authorities each year. Member states had to apply the rules from 1 January 2023, so the first reports covered selling activity in that year, and each country wrote the directive into its own national law.
eBay’s Irish help page on DAC7 explains how this applies to eBay specifically. Because eBay GmbH has its registered office in Germany, the German version of the directive governs eBay’s reporting. That law is the Platform Tax Transparency Act, known by its German abbreviation PStTG. eBay sends its reports to the German Federal Central Tax Office (BZSt), and the German authority passes each seller’s information to the tax authority of the member state where that seller lives. A seller in Ireland, France or Italy is therefore reported through Germany and then to their own tax office.
Two points about DAC7 cause most of the confusion we see. The first is that DAC7 does not create a new tax. eBay states plainly that DAC7 and the PStTG do not change your tax obligations. They only decide whether eBay must report your data. Whether you owe tax on what you sold depends on your overall activity, inside and outside eBay, and on whether you sell privately or as a business. The second is that reaching the DAC7 threshold does not by itself make you a commercial seller. eBay’s page says the question of whether you trade privately or commercially does not depend on the DAC7 values.
Why eBay asks before it reports
The directive does more than require a report. It requires the platform to collect and verify seller information first, and it requires member states to make platforms enforce that collection. Annex V of the directive states that where a seller does not provide the required information after two reminders following the initial request, and not before 60 days have passed, the platform must either close the seller’s account and prevent re-registration or withhold payment of the seller’s consideration until the information is provided. That is the legal background to every DAC7 banner. eBay is not choosing to hold your money as a penalty. The law requires the platform to stop paying sellers who refuse to identify themselves.
This matters for how you respond. A DAC7 request is a compliance step with a defined answer. Treat it as paperwork with a deadline, and the hold never starts. Treat it as optional, and the platform has no discretion left.
How DAC7 compares with the US Form 1099-K
Sellers who also sell on eBay.com often ask whether DAC7 is the European 1099-K. The comparison is useful but imperfect. Both are information reports that a platform files about its sellers. Both depend on the seller’s tax identification number matching their legal identity. They differ in scope, thresholds and the details collected.
| Point | EU DAC7 (eBay GmbH) | US Form 1099-K (eBay.com) |
|---|---|---|
| Who is covered | Sellers resident in an EU member state | US sellers who meet IRS or state thresholds, or had backup withholding applied |
| eBay’s published threshold | 30 or more sales, or 2,000 euros or more in a calendar year | For 2025, gross payments over 20,000 dollars and more than 200 transactions |
| Tax ID collected | Your national tax identification number, or place of birth where an individual has none | SSN, EIN or ITIN |
| Bank data in the report | Bank account number and name on the account | Not part of the form |
| Who receives it | German Federal Central Tax Office, then your home tax authority | IRS and the relevant state tax authority |
If you sell on both sides, keep the two records separate in your head. A correct SSN on file with eBay.com does nothing for a DAC7 request on an EU account, and the reverse is also true. Our parent guide on eBay taxpayer ID and payout verification covers the US side in depth.
Details eBay Collects
eBay’s DAC7 page lists exactly what it reports to the tax authorities. The list differs slightly for individuals and legal entities. Individuals include sole traders.
| Individual sellers (including sole traders) | Legal entities |
|---|---|
| First and last name | Business or legal name |
| Primary address and member state of residence, for both groups | |
| Date of birth | Business registration number |
| Tax identification number | |
| For both groups, the VAT identification number where one exists, plus the payout bank account number and the name it is held in | |
| Not applicable | Any permanent establishment in the EU, where available |
For both groups eBay also reports the total amount paid or credited to you in each quarter, the number of transactions behind that total, and the fees, commissions or taxes eBay withheld or charged in each quarter. eBay notes that the reported amount excludes fees paid to eBay, refunds and cancelled orders within the period, and tax eBay collected, so it may differ from the payouts you received.
The tax identification number is the field that fails
Most DAC7 problems we review trace to one field. The tax identification number has to be the number your country issues for income tax purposes, and it has to belong to the same person or entity named on the eBay account. eBay’s Irish page gives a concrete example. Irish individuals and sole traders provide their Personal Public Service Number, and companies provide their Tax Reference Number. Both use the format of seven digits followed by one or two letters. eBay warns that these numbers are different from a VAT identification number. Entering a VAT number in the TIN field is one of the most common errors we see, because business sellers use their VAT number every day and assume it is the number being asked for.
Each member state issues its own number in its own format. Use the identifier your national tax authority issued to you for income or corporation tax, exactly as it appears on your tax correspondence. An individual with no such number can give a place of birth instead, according to eBay’s page.
The bank account is part of the report
Sellers are often surprised that DAC7 reports the bank account number and the name on that account. A name mismatch between your eBay account and your payout account causes trouble under DAC7 as well as under eBay’s own verification. The reviewer checks one thing, whether the account receiving the money belongs to the same person or entity named on the seller account. If your shop trades as a company but your payouts land in a director’s personal account, the report shows a mismatch the tax authority can see.
eBay EU requirements checklist for eBay DAC7
- Your legal name on eBay matches your tax registration exactly, including any company suffix.
- Your primary address is your residence or registered office, the same one your tax authority holds.
- Your date of birth (individuals) or business registration number (entities) is entered.
- Your income tax identification number is entered in the TIN field, and your VAT number, if you have one, is entered separately in the VAT field.
- Your payout bank account is in the same name as the eBay account, and the account type matches (business account for a business seller).
- Any permanent establishment in another member state is declared (entities).
- You know where to download your Platform Tax Transparency Report in Seller Hub or My eBay.
- You have a calendar reminder for the 36 month reverification.
Related guides are eBay MC001 Verification and Payouts You Cannot Receive and eBay DSA Trader Details for EU Sellers.
If payouts are already held and you are unsure which field failed, our eBay suspension specialists can compare your DAC7 record with your tax and bank documents before you resubmit.
Thresholds and Reporting
eBay’s page sets out when your data will be reported. You must reside in the EU, and in a calendar year either your consideration from eBay sales must equal or exceed 2,000 euros, or you must complete 30 or more sales. Cancelled transactions do not count toward the 30.
The directive frames the same rule from the other side. It defines an excluded seller as one with fewer than 30 sales of goods and total consideration of no more than 2,000 euros in the reporting period. Cross either line and you become reportable. A small seller who lists 30 low-priced items in a year can receive a DAC7 request despite earning little. The transaction count alone is enough.
What counts as consideration
eBay defines your consideration as the full amount available for you to receive for your sales, including shipping costs and taxes you may receive, such as VAT. It excludes taxes eBay collected and remitted, taxes charged on fees, and amounts eBay deducted for fees, coupons, cancelled or deleted orders and returns. Two sellers with the same sales total can therefore land on different sides of the 2,000 euro line depending on how much VAT they charge and how many orders were refunded.
When eBay asks and when it reports
eBay states that if your tax details are not already stored, you will see a banner in your seller dashboard once you first reach 2,000 euros in consideration or 30 transactions, and you will receive an email asking for the information. The request can therefore arrive part way through the year, the moment you cross a line.
Reports cover selling activity from 1 January to 31 December of the previous year. Under the directive the platform reports to its competent authority no later than 31 January of the following year. eBay also states that no report is shared if you provided your tax number but did not meet the thresholds in the previous year. Providing the number early does not mean you will be reported.
Your copy of what was reported
If eBay reports your data, it provides you with a copy in a PDF file, plus a CSV file listing the transactions used to calculate the totals. The CSV is shared only with you. eBay sends an email and an account notification when the files are ready. To download them, go to the Payments tab in Seller Hub or Payments in My eBay, select Taxes, and generate the Annual Report or Detailed File under Platform Tax Transparency Report. We recommend saving both files every year. When a tax authority asks questions about the reported figure, the CSV is the document that reconciles it to your own books.
Missing Information
eBay’s page is direct about the consequence. If you are required to provide the information and do not, your account may be subject to payout holds or restrictions on selling privileges. For the 36 month reverification described below, eBay goes further. A seller who does not act within 30 days of the email request has payouts blocked until the information arrives, per eBay’s page.
The documented sequence is short. eBay requests the information, reminds you, and then holds payouts or restricts selling until the information arrives. eBay does not publish further tiers, and we do not invent them. In our experience the hold lifts once correct, matching details are on file and verified, but eBay does not publish a release time frame, and nobody can promise one.
How a missing data hold differs from a performance hold
A DAC7 hold is an identity and tax data issue. It is unrelated to your seller level or service metrics, and a strong performance record does not release it. Sellers sometimes confuse it with the transaction holds that follow a Below Standard evaluation or a Very High item not received rating, which hold funds until tracking shows the item is on its way. Those are covered in our guides on eBay Below Standard seller level and eBay Very High INAD and INR rates. Read the banner carefully. If it names tax information, the only answer is tax information.
First request compared with repeat or unresolved requests
A first request is routine. Every EU seller who crosses the threshold receives one, and entering correct details closes it. The situations that escalate are three.
- The request is ignored. After the reminders the directive’s enforcement rule applies and payouts stop.
- The details are entered but fail verification. The banner returns, often with less explanation than the first time. This is usually a name or number mismatch.
- The details were correct once and went stale. An address change, a new company, a new bank or a reverification cycle produces a fresh request on an account that was compliant last year.
Each of these needs a different response, and the method below handles all three.
The method we use when payouts are already held
Our method for tax and bank verification cases rests on one position, that the information is accurate, and the hold came from a correctable data issue that is now resolved. Every step supports that position.
- Name the notice and the requirement. Record the exact wording of the banner or email, the date it arrived and what it asks for. Your response should answer that request and nothing else.
- Identify the root cause precisely. Reviewers reject vague causes. “We missed the email” is a cause only if it is true and paired with a control. The usual causes are a VAT number in the TIN field, a trading name where the legal name belongs, a personal bank account on a business seller account, or a business that changed legal form without updating eBay.
- Correct the data at the source. Enter the legal name, address, tax number and bank details exactly as your tax authority and bank hold them. Do not enter anything you cannot prove with a document.
- Prepare matching documents. A tax registration letter or recent tax assessment showing the name and number, a company registration extract for an entity, and a bank statement showing the account holder name. Every name on every document should be identical.
- Respond through the route named in the notice. Use the banner or link in your seller dashboard and the funds or appeal route named in your notice. Keep a dated record of what you submitted.
- Make one concrete request. Ask that verification be completed and payouts restored. Do not argue hardship and do not threaten. If the first response is refused, a second submission with stronger documentation is the next step.
Where the eBay EU notice and appeal path differ from the US
- Who you contract with. EU sellers contract with eBay GmbH in Germany. US sellers contract with eBay Inc. The governing rules and the reporting authority differ.
- What triggers the request. In the EU, crossing 30 sales or 2,000 euros. In the US, eBay asks for an SSN, EIN or ITIN whenever one is not on file, and issues a 1099-K at the IRS threshold.
- What the law requires of the platform. The EU directive requires the platform to hold payouts or close the account after two reminders and 60 days. The US rules center on information returns and backup withholding.
- Your formal rights. EU business sellers can rely on the Platform-to-Business Regulation, which provides a statement of reasons for a restriction, the internal complaint-handling system, and mediation. US sellers rely on the eBay User Agreement and eBay’s own processes.
- The copy you receive. EU sellers get the Platform Tax Transparency Report PDF and CSV. US sellers get Form 1099-K in Seller Hub or My eBay.
Your rights when a restriction is applied in the EU or UK
If you sell as a business, the Platform-to-Business Regulation, Regulation (EU) 2019/1150, gives you procedural rights when a marketplace restricts or suspends its service to you. Article 4(1) requires the platform to give a statement of reasons on a durable medium before or when the restriction takes effect. Article 4(3) gives you the opportunity to clarify the facts through the internal complaint-handling system. Article 11 requires that internal system, and Article 12 requires platforms to name mediators for disputes. For a dispute about held payouts, these articles are the relevant route.
The same Article 4 survives in UK law as retained legislation, so UK business sellers hold the same right to a statement of reasons and to clarify the facts. Article 4(2) adds 30 days’ notice before a full termination, with exceptions in Article 4(4) limited to a legal or regulatory obligation, an imperative reason under the law, or repeated infringement of the terms. Keep any reference to these rights factual. Their value is in asking for the specific reason and correcting the record, never in threatening the reviewer.
Keeping Data Current
Most DAC7 holds on established accounts happen because something changed and eBay was not told, or because the 36 month cycle came round. The routine below prevents both.
The 36 month reverification
eBay requires eligible sellers to refresh their tax information and revalidate their account details every 36 months. The requirement applies only to sellers who had sales in the 36 month period since they last provided the information. Eligible sellers see the requirement highlighted in their seller dashboard and receive an email. Miss the 30 day window after that email and eBay blocks payouts until the details are in. Put the date you last confirmed your tax details in your calendar with a reminder at 35 months.
Changes that should trigger an update the same week
- Moving home or office. eBay reports where you live, so a new address belongs in your account the week you move. A move to another EU country changes which tax authority receives your data.
- Changing legal form. A sole trader who incorporates now has a new legal name, a new registration number and a new tax number. The eBay account, the tax details and the payout account must all move together.
- Changing banks. A new payout account must be in the same name and of the same type as the seller account.
- Registering for VAT. Add the VAT number in its own field and leave the income tax number where it is.
- Adding a place of business in another member state. Entities should declare a permanent establishment where one exists. Your tax adviser decides whether you have one.
Business models and how to run each compliantly
Business sellers paid into a personal account. This is the most common mismatch. A company account on eBay with payouts landing in a director’s personal account fails the basic test the reviewer applies. Run it compliantly by opening a business account in the company’s legal name and linking that account before you cross the threshold.
Sellers who changed entity or tax number. A partnership that became a limited company, or a sole trader who incorporated, often updates the bank but leaves the old tax number in place. The tax number no longer matches the name. Update the legal name, the registration number, the tax number and the payout account together, in one session, and keep the registration certificate on file.
Private sellers clearing out a home. Thirty sales of household items can trigger DAC7 even when no tax is owed. The report does not change that. Provide the information, keep your purchase records for items you sold at a loss, and ask a tax adviser if the amounts are significant.
Multi-country EU sellers. A seller living in one member state and shipping from a warehouse in another must report residence correctly. The member state of residence decides which tax authority receives the data.
US and UK sellers selling to EU buyers. DAC7 applies to sellers resident in the EU. A seller resident outside the EU who sells to EU buyers is not a reportable seller under the directive for sales of goods. Those sellers answer to their own regime, which we cover below.
Regional differences and the law in each region
This section is general information for sellers. It is not tax or legal advice for your situation.
| Region | Law | What it means for eBay sellers |
|---|---|---|
| European Union | Council Directive (EU) 2021/514 (DAC7), amending Directive 2011/16/EU | Platforms collect and verify seller data and report sellers with 30 or more sales or over 2,000 euros. Payouts are withheld or accounts closed after two reminders and 60 days. |
| Germany (eBay GmbH) | Platform Tax Transparency Act (PStTG) | The national law eBay reports under for all EU-resident sellers, through the Federal Central Tax Office. |
| European Union | Platform-to-Business Regulation, Regulation (EU) 2019/1150, Articles 4, 11 and 12 | Business sellers receive a statement of reasons for restrictions, access to internal complaint handling and mediation. |
| United Kingdom | The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023 (SI 2023/817), and retained Regulation (EU) 2019/1150 Article 4 | The UK runs its own platform reporting regime outside DAC7. UK business sellers keep the Article 4 rights to reasons and to clarify the facts. |
| United States | 26 U.S.C. 6050W (Form 1099-K) | eBay.com collects SSN, EIN or ITIN and issues 1099-K to sellers above the IRS or state thresholds. |
| All regions | The eBay User Agreement as a contract | Payouts and access are governed by the agreement. eBay’s own policies set what it requires and when funds release. |
For the US side of tax verification, including what happens when payouts are withheld over a missing or mismatched TIN, see our guide on eBay payouts withheld for a TIN.
A yearly DAC7 routine
- January. Download last year’s Platform Tax Transparency Report PDF and CSV once eBay notifies you. Reconcile the reported totals to your own sales records.
- Each quarter. Open your account settings and confirm the legal name, address, tax number and payout account still match your documents.
- On any change. Update tax and payout details together within the same week.
- At 35 months. Prepare for reverification before eBay asks.
- Whenever a banner appears. Answer within days, well inside 30 days, and keep a dated record.
The prevention lesson is short. Provide DAC7 details promptly when asked, keep one legal identity across your tax records, your bank and your eBay account, and the request stays a five minute task.
Frequently Asked Questions
What is DAC7 on eBay?
DAC7 is the EU rule that requires eBay to collect identity and tax details from EU-resident sellers and report their annual sales to tax authorities. eBay GmbH reports under Germany’s Platform Tax Transparency Act to the Federal Central Tax Office, which shares the data with your home tax authority. It does not create a new tax.
What details does eBay collect for DAC7?
eBay collects your name, primary address, member state of residence, tax identification number, VAT number where available, and the bank account number and name on the account. Individuals also provide a date of birth, and entities provide a business registration number. eBay also reports your quarterly sales totals, transaction counts and fees.
Is DAC7 like the US Form 1099-K?
It is the closest EU equivalent, but the rules differ. DAC7 applies to EU residents with 30 or more sales or 2,000 euros or more in a year, while eBay.com issues a 1099-K for 2025 to sellers with gross payments over 20,000 dollars and more than 200 transactions. DAC7 also reports your bank account details.
What happens if I do not provide my DAC7 details?
Your account may be subject to payout holds or restrictions on selling. The EU directive requires the platform to withhold payments or close the account after two reminders and at least 60 days, and for the 36 month reverification eBay blocks payouts if you do not act within 30 days of its email.
Who must report under DAC7?
Platforms report sellers. eBay files the report, and you only supply accurate information and keep it current. Whether you then owe tax on what was reported depends on your overall selling activity, so check with a tax adviser if the amounts are significant.
Get Help With eBay DAC7 Reporting
Most DAC7 requests close as soon as correct, matching details are on file. When payouts stay held after you have corrected your information, the case usually needs a reconciled package with the corrected data, documents that match it name for name, and a single clear request through the right route. Our eBay account suspension and funds service builds that package and handles the follow-up. You can submit your case for review or book a consultation if you want to talk it through first.
Selling on other EU marketplaces too? The same tax data rules reach every platform, and our marketplace suspension services cover each of them.
Sources
- eBay: EU DAC7 and the Platform Tax Transparency Act, sales reporting obligations
- eBay: Registering as a seller
- eBay: Form 1099-K and other US tax forms
- eBay: Updating your checking account details for payouts
- EUR-Lex: Council Directive (EU) 2021/514 (DAC7)
- Gesetze im Internet: Platform Tax Transparency Act (PStTG)
- EUR-Lex: Regulation (EU) 2019/1150 (Platform-to-Business Regulation)
- legislation.gov.uk: Regulation (EU) 2019/1150 Article 4 (retained UK version)
- legislation.gov.uk: The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023
- govinfo: 26 U.S.C. 6050W