EU Experience Hosts and DAC7
Operators who are running digital nomad experiences in Europe should be aware of the requirements of DAC7 and Nomad Stays reporting requirements.
Experiences include workcations, staycations, nomad tours, retreats, multi-day business workshops and offsites etc.
DAC7 requires 'Platform Operators' like Nomad Stays to collect certain financial information about the operators of experiences and then report them each year to the EU governments. DAC7 started on 1 January 2023 and first reporting is due in January 2024.
Like a lot of government legislation, it can be hard to understand but at least the German Government has put out specific interpretation that experiences seem included under DAC7.
Key Points
- Bundle of goods and services: If suppliers offer a bundle of different goods and services, including both reportable and non-reportable goods/services (for example, package tours that include other services in addition to hotel room), the reporting obligation regarding the relevant services (in this case, room rental) remains unaffected. The remuneration paid for the bundle of services shall be allocated based on the economic value of the individual components.
- If the economic value of non-reportable components can’t be determined, the total price must be reported instead. Deciding whether the total price or only the parts attributable to reportable goods/services are to be reported increases the platform operator’s burden and liability risk. The fact that the determination of shares in the total economic value and the allocation of suppliers’ activities to reportable goods/services must be carried out by the platform operator uniformly for all suppliers, rather than on a case-by-case basis, should provide only minor relief.
More About DAC7 can be found at https://help.nomadstays.com/search?q=dac7&pid=375&type=search&upid=