DAC7 is a new European directive that went into effect on 1 January 2023. This directive applies to all online platforms, including SnappCar. Under DAC7, SnappCar is obliged to collect information about sellers on the platform and report these to the tax authorities.
We can imagine that you have more questions about this. Therefore, we answered the most commonly asked questions below. Read further to find out what DAC7 means for you.
1. Background on DAC 7
What is DAC7?
How will DAC7 impact me?
Does DAC7 apply to me?
Which sellers are exempt from DAC7 reporting?
I have only rented out a few times and/or have not earned much; does DAC7 still apply to me?
I stopped renting via SnappCar, does DAC7 still apply to me?
2. Practical information about DAC7 reporting
What is the official list of data that is required under DAC7?
How do I submit my total amount of transactions and income?
What happens if I do not provide the required information?
Where can I find my tax identification number or my VAT number?
How do I submit my information to SnappCar?
I thought normal companies are not allowed to collect my tax identification number (BSN)?
Will I get an overview of my data?
Can I change my information after submitting it?
Will I need to report my data again next year?
How will my data be stored, secured, and used?
Will my data be checked?
If I do not submit any information, will SnappCar share my information?
3. Taxation & car sharing
Will I be taxed based on my data?
Should I be worried about my taxes?
Why can’t SnappCar give me tax advice?
DAC7 is short for Directive on Administrative Cooperation 7 (Council Directive (EU) 2021/514). It is a new European directive that aims to improve tax cooperation between EU member states and increase revenue transparency of online platforms. DAC7 went into effect on 1 January 2023, and under DAC7 all online platform operators are required to collect, verify, and report certain information about its sellers (users who receive income) to local tax authorities. Sellers are all users who receive an income via a digital platform. In the case of SnappCar, it refers to all owners on our platform.
Under DAC7, SnappCar is obliged to collect and report certain information about you to the tax authorities. There may be several ways how this can impact you as a car owner:
The Dutch tax authority (Belastingdienst) also has a page for sellers: DAC7 voor verkopers. Unfortunately, the information on the website is not available in English.
We will send the next report in January 2025 and we will report on:
Note: In January 2024, we reported on all owners who registered on our platform for the first time in 2023 and had a first transaction in 2023.
SnappCar is not required to report on specific categories of sellers. These include:
As a platform, we are obliged to report about all owners who had a transaction on our platform since 1 January 2023. Also if you only rented out a few times or did not earn much, we must still report your information.
As a platform, we are obliged to report about all owners who had a transaction on our platform since 1 January 2023. Also if you only rented out a few times or did not earn much, we must still report your information. We report per calendar year. If you stopped renting out halfway through the calendar year, we will report your activities until this moment.
| For individuals/ private sellers | For business sellers |
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You do not have to submit your total amount of transactions and income. SnappCar will report this information for you. We will also send you a personal overview with all the information we report, so you will know exactly which information we have shared. This way you can also submit necessary corrections.
If sellers do not provide the required information, SnappCar will be required by law to freeze payouts and ultimately remove sellers until we receive the necessary information.
Your tax identification number is often found on your passport, identity card, or driving license. See the below links for more information:
Tax identification number:
Waar vind ik mijn burgerservicenummer (BSN)? | NederlandWereldwijd
VAT identification number:
Btw-identificatienummer opvragen, controleren en vermelden | Ondernemersplein
For the upcoming report on the calendar year 2024, you do not have to submit any information yet. We will inform all owners on time about the information that we need from you and the way you can submit this.
Only if you registered on SnappCar in 2023 and had a first rental in 2023, you have received information via mail from us in 2023. If you belong to this group and did not receive any information, please reach out to support@snappcar.nl
There are several companies that ask you for your tax identification number. For example, your insurance company, bank, or hospital. They do this because they have a legal obligation to identify you. Since 1 January 2023, digital platforms also have an obligation to ask you for your personal details (if you are a natural person). These are your name, address, and tax identification number. This obligation started with the DAC7 Directive. See the website from the Dutch Data Protection Authority for more information.
When we report your information to the tax authorities, we will send you an overview with the same information. Also, you can download your rental data by logging into your account on our website (not available in the app).
If you find out that you shared the wrong information, please reach out to our support team via support@snappcar.nl.
Since 1 January 2023, SnappCar has been obliged to collect information about our owners and report this to the tax authorities. The DAC7 Directive gives us a yearly reporting obligation. Every January, we will report your information from the previous calendar year.
Your data will be securely stored as written in the Dutch privacy law (Algemene Verordening Gegevensbescherming, of AVG). The data will not be used for any other purpose than reporting to the tax authorities. The data retention and deletion period will follow our privacy policy.
Under DAC7, SnappCar is obliged to verify the information that we collect from our sellers. We will ask you to provide us with a copy of an ID. Where necessary, SnappCar is obligated to verify data on correctness using external sources. If we notice any discrepancies, we will ask you to update the relevant information and/ or provide additional proof so we have the correct data. Moreover, the tax authorities may check your data against the data they already have from you.
If you do not submit additional information, we will report all the relevant information (for DAC7) that we do have, because SnappCar has a legal obligation to report your information.
You can submit a deletion request, but be aware that your information will still be shared with the tax authorities if you have rented out your car on our platform since 1 January 2023. This is because SnappCar has a legal obligation to report your information.
Taxation regulation has not changed. The purpose of DAC7 is transparency within the EU, not new taxation. If you were obliged to pay taxes before DAC7, you still are obliged to pay them afterward. However, it is possible that as a result of DAC7, there is more attention and transparency on earnings through platforms. This is why this is a good time to check if you are (not) paying taxes on your rental income in the correct way. If you are not sure whether you need to pay taxes on your rental income or have concerns about it, please consult the local tax authorities or your tax advisor. They will be able to help you determine the best way to report your taxes.
SnappCar is not qualified to give any tax advice and taxation is highly dependent on your personal context, so we cannot say whether or not you should be worried about your taxes. However, from our experience, we see that most car owners who rent out their vehicles do not have higher earnings than the expenses from their vehicles. In cases you are renting out for commercial benefit, there are several options available in line with normal taxation for entrepreneurs and businesses. See this page from the Dutch tax authorities or consult your tax advisor if you want to get more information.
We are not qualified to provide tax advice and the tax authorities have advised us to not give any guidance ourselves but to direct you to the relevant competent parties. We are working together with tax authorities to help them update the information specifically for car sharing in the coming months.
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