DAC7 is a new European Union tax directive requiring all digital platforms to report their 'sellers' (drivers) earnings to tax authorities.
From 01/01/2023 onward, any income that self-employed drivers generate through our platform must be annually reported to tax authorities by 31/01/2024. After the report to the tax authorities, we will provide you with a copy.
Please note that our reporting obligation does not influence your taxable status in your respective jurisdiction. Whether or not you must pay taxes on your rides is determined by your local tax laws and not by transparency requirements as those set by the DAC7 rules.
How will the tax authorities use my information?
How EU member states utilize DAC7 information may vary. In principle, the DAC7 reporting objective is to help tax authorities with the simplification of income tax statements review. However, we can not confirm to which extent this information will be used on tax return verification by tax authorities.
Who will be affected by DAC7?
DAC7 applies to partners (individual entrepreneurs and legal entities) who offer services through the FREENOW platform in an EU Member State. Drivers employed by a fleet operator are excluded from the scope of DAC7 and will not be subject to reporting.
FREENOW can not provide tax advice. We strongly suggest that each driver seek independent tax guidance from a qualified professional to make sure they follow all relevant tax laws and regulations. Tax law application varies significantly depending on individual circumstances.
Should you have any inquiries or require clarification on DAC7 with FREENOW, don't hesitate to contact us.