Whatnot’s data sharing obligations for EU (DAC7), UK and Canadian sellers Whatnot’s data sharing obligations for EU (DAC7), UK and Canadian sellers

Whatnot’s data sharing obligations for EU (DAC7), UK and Canadian sellers

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Background

‘DAC7’ references the EU Council Directive 2021/514, which requires online marketplaces, such as Whatnot, to collect, report and store information on certain EU Sellers to EU tax authorities.

If you are a seller residing in the EU and your sales on Whatnot in a calendar year exceed €2,000 or you make 30 or more sales in a calendar year, Whatnot is obliged to report certain information to the relevant EU tax authorities under DAC7.

DAC7 reporting is an annual reporting obligation for Whatnot. As such, Whatnot is obligated to share certain EU seller information with the tax authorities in January following the end of the year. DAC7 is effective from January 1, 2023 and your information in respect of the calendar year 2023 will be shared in January, 2024.

Similar rules apply to Canadian sellers starting January 1, 2024. Canadian seller data for calendar year 2024, will be reported to the Canadian Revenue Agency in January 2025.

The UK has also enacted rules requiring UK established platforms to report user data. While Whatnot Ireland is not established in the UK, in the future Whatnot may be required to report information on UK Sellers to the Irish tax authorities, who will then exchange this information with HM Revenue and Customs. When the reporting of UK seller information will be required is subject to Ireland enacting legislation mandating the collection of UK user data and the activation of a data exchange agreement between the UK and Ireland.

Information collected

The following information will be shared with the relevant Member States:

Individuals Legal Entities/ Businesses 
  • First and last name;
  • The Primary Address;
  • Any Tax Identification Number (“TIN”) issued to the Seller, including each Member State of issuance. In the absence of such number, the place of birth of the Seller;
  • The VAT identification number of the Seller, where available;
  • The date of birth of the Seller;
  • The total sales and amount of sales for the year by quarter;
  • The financial (bank account) details to where the Platform makes the payments;
  • Platform commissions, payment processing fees, and any other fees, commissions or taxes withheld or charged.
  • The legal name;
  • The Primary Address, and where applicable the permanent establishment of the Seller in a Member State;
  • Any TIN issued to the Seller, including each Member State of issuance;
  • The VAT identification number of the Seller, where available;
  • The business registration number;
  • The existence of a permanent establishment through which the relevant activities are carried out in the EU, where available, indicating each respective Member State, where such a permanent establishment is located;
  • The total sales and amount of sales for the year by quarter;
  • The financial (bank account) details to where the Platform makes the payments;
  • Platform commissions, payment processing fees, and any other fees, commissions or taxes withheld or charged.

Requirement to provide information

Where not already available, you may be asked to provide additional information, such as your Tax Identification Number (TIN), for Whatnot to meet its reporting obligations. ​​In addition, you may be asked periodically to confirm that your details are still up to date.

If you fail to provide information for Whatnot to meet its DAC7 reporting obligation, Whatnot is required to either: (a) close your account and prevent you from re-registering on the Platform; or (b) withhold the payments due to you for as long as you do not provide the information requested.

Data sharing and storage

Whatnot will collect and store your information if you made sales on the platform for any part of a year where you are an EU resident for the purposes of DAC7. In January of the year following the reporting year We’ll provide sellers a copy of their information reported to the tax authorities.

As EU sellers contract with an Irish legal entity, Whatnot Europe Limited, your data will be provided to the Irish Revenue for DAC7 compliance purposes. The Irish Revenue will then share this data with the tax authorities in the EU Member State(s) where you are resident.

Whatnot is required to store the collected and reported data for a period of 6 years from the end of the year in which the information is collected. If your account is deleted or you request your data to be deleted, Whatnot is still obligated to collect, report and store your data in line with the DAC7 reporting requirements.  The DAC7 data requirements trump any conflicting GDPR (General Data Protection Regulation) data storage or deletion requirements.

In some cases, the information associated with your Stripe account will be reported and retained for the purposes of meeting our reporting obligation. For information about how Stripe shares data with us, please refer to section 5.1 of Stripe's terms of service here and privacy policy here.

Tax ID formats by country

Country Individual Business 
France

Tax Identification Number:

13 digits (first digit is always 0, 1, 2, or 3)

VAT Identification Number:

Country code ''FR’’ followed by 11 digits. In France the first three digits can also be letters (e.g. FRXX123456789)

SIREN Business identification Number:

9 digits

Germany

Identification Number / Tax Number:

11 digits

VAT Identification Number:

Country code ‘’DE’’ followed by 9 digits (e.g. DE123456789)

Tax Identification Number:

10 digits to 13 digits

Disclaimer

Every buyer’s and seller's situation is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Whatnot does not provide you with tax advice for your individual situation. Therefore, we strongly recommend speaking with a professional tax advisor for tailored advice.

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