DAC7 TAX Compliance
What is DAC7 Compliance?
DAC7, which is short for the EU Directive on Administrative Cooperation (DAC7), is a tax regulation requiring Creators on digital platforms to report specific tax information to EU tax authorities. Complying with DAC7 helps you avoid penalties, payout blocks, and potential account restrictions. But don’t worry—we are committed to providing you with all the essential tools and information to navigate the process effortlessly.Do You Need to Report?
If you have received any amount of commission as a creator, you are required to comply with DAC7. You will be notified if you need to fill in your tax information.
What Information is Required?
Here's a summary of the different information required from EU Creators to comply with DAC7Requirement | Individuals |
| Basic Information | - Full name- Primary address |
| Tax Identification Number (TIN) | - You’ll be asked to enter your TIN. If you don’t have one, you can select the “No TIN” option.- If you have more than one TIN, you can add and manage multiple entries. |
| VAT ID | - Provide your VAT number if you are registered for VAT. If you’re not registered, simply confirm your VAT registration status by selecting 'no'. |
| Place of birth | - Provide your place of birth (only if no TIN is provided) |
Stay up-to-date, stay compliant
How to Track Your Progress: Keep an eye on your notifications to stay on top of your DAC7 requirements. Navigate to your Tax Information page for an up-to-date view of your progress.Here's a Visual Guide:
Step 1: Navigate to the verification center page in the Creator Center. Alternatively, click the notification you receive to access your Tax Information page directly.
Step 2: Click on the Tax Information tab, then click Add tax information.
Step 3: Enter your tax information by following the prompts.
- Initial Notification: You will receive the first reminder about completing the form.
- Second Reminder: If the form remains incomplete, we will send a second reminder.
Access Your EU DAC7 Tax Report
As required by the EU DAC7 regulations for digital platforms in the EU, TikTok Shop provides you with a copy of the information submitted to the relevant tax authorities. This includes your total TikTok Shop earnings for the reporting year and relevant identification details.Where to find it
Open the TikTok app, go to your Earnings page, and tap the new Tax Report section. There you can:- Choose the reporting year
- See which TikTok Shop entity filed your report
- Download the report in Excel format
Your EU DAC7 tax report will be available for download starting around January 31 each year.
Notes:
- This report is for reference only and contains the same data TikTok Shop submitted to your country’s tax authority.
- If your tax details (such as VAT number or address) are missing at the time of submission, those fields may appear blank in your report.
- Please consult a tax advisor to ensure your filings are accurate and compliant with local regulations.
What’s in the report?
Name | Explanation |
| ID | A unique reference number automatically generated by the system to identify you in this report |
| Individual/Entity | Indicates whether you are an individual or a company |
| Residence country code | The country code where you are considered a tax resident for this report. If you are in the EU, this includes: 1. Any EU member state that issued your TIN 2. The member state where you have a permanent establishment 3. Any EU member state where your primary address is For example, if your company is incorporated and has a primary address in Ireland (country code IE), a TIN in France (country code FR), and a permanent establishment in Spain (country code ES), this field will list "IE, FR, ES". For UK, your residence country is the country in your primary address (for corporations) and residence address for individuals or sole traders. |
| TIN | Your tax identification number |
| TIN issued by | The code of the country that issued your TIN |
| Entity identification number | Your company’s registration number |
| VAT | Your Value Added Tax (VAT) identification number |
| Entity name | The legal name of your company or entity |
| Individual’s last name | The last name of the individual or sole trader |
| Individual’s middle name | The middle name of the individual or sole trader |
| Individual’s first name | The first name of the individual or sole trader |
| Individual prefix | The prefix, such as Mr, Ms, or Dr of the individual or sole trader |
| Birth date | The birthdate of the individual or sole trader |
| Birth place country code | The country code of the place of birth for the individual or sole trader |
| Permanent establishments | The address of your permanent establishments. It is a place where a business has ongoing operations and is required to pay corporate income tax. |
| Address country code | The country code of your primary address (for corporations) or residential address (for individuals or sole traders) |
| Primary address | The primary address for corporations, or residential address for individuals or sole traders |
| Relevant activities | The type of activities generating income. For example, PersonalServices for creators and partners or SaleOfGoods for sellers. |
| Consideration | Consideration is the net of any fees, commissions or taxes withheld amount credited or paid to you in connection with the relevant activities. Check detailed data in the report for more information. |
| Consideration currency code | The currency code for the consideration amount |
| Fees withheld | For sellers, this is the amount shown on TikTok Shop invoices. For creators and partners, this amount is 0. |
| Fees withheld currency code | The currency code for fees withheld |
| Taxes | The taxes withheld from your sales or services on TikTok Shop |
| Taxes currency code | The currency code for the withheld taxes |
| Number of activities | The number of transactions corresponding to consideration each quarter. Check detailed data in the report for more information. |
Yearly Confirmation Requirement
- Annual Confirmation: Creators must confirm the accuracy of their DAC7 information each year by December 31, starting 2025.
- Penalty for Non-Confirmation: Payouts will be blocked if confirmation isn’t completed for three consecutive years.
Summary Checklist for EU Creators:
- Verify Eligibility: Track your transaction count and settlement totals.
- Prepare Documentation: Ensure TIN and VAT details are ready for submission.
- Respond to Notifications: Act on reminders to avoid enforcement actions.
- Confirm Yearly: Review DAC7 details by December 31 each year.
- Keep Information Updated: Stay on top of submission and verification deadlines to ensure continued access to payouts.
If needed, you can find more information about the structure of VAT and Tax Identification Number below:
