What is the new tax directive?
How will the tax authorities use my information?
What actions do I need to take to comply with my tax reporting?
How often must I re-verify my tax information with Freenow?
What is the DAC7 tax directive?
DAC7 is a new European Union tax directive requiring all digital platformsto 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 January 31st. After the report to the tax authorities, we will provide you with a copy of the transactional information reported.
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 (individualsand 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.
What actions do I need to take to comply with DAC7?
Currently, there is no specific action on your part.If any missing data is needed, we will reach out to you accordingly.
In case you were contacted more than one time to provide the missing required information and still do not make it available, we are legally obliged to suspend your payouts or even block your Freenow account until you comply with the information provision requirement.
How often must I re-verify my tax information with Freenow?
Every 3 years. If you fail to re-verify your information, you will be subject to the same penalties as if the required reporting data wasn’t provided.
Should you have any inquiries or require clarification on DAC7 with Freenow, don't hesitate to contact us via chat.
To chat with us, go to our 'Help' section in the app and open a new conversation. If you need help with a trip, make sure to select the relevant booking.