The DAC7 Directive

Directive DAC7 (Directive (EU) 2021/514) is a European Union legislation that refers to the obligation to provide information on intermediation operations of digital platforms, such as those involved in online tourism services. It is part of the EU's effort to ensure fairer and more efficient taxation on transactions carried out through these platforms. DAC7 is an extension of the DAC6 Directive, which focused on disclosing aggressive tax planning schemes, but DAC7 focuses on digital platforms and the transactions that occur through them.

DAC7 requires digital platforms to collect and report information about intermediation activities that occur on our platform. This includes data relating to business transactions such as renting accommodation, booking travel, sightseeing, and other tourism services. The information collected must be provided to the tax authorities of EU countries in order to combat tax evasion and ensure that the taxes due are paid.

Implementation of DAC7 can have several implications:

1. Data Collection: Momentum to collects detailed information about transactions carried out through Momentum. This may include details about service providers, customers, amounts involved, transaction dates and other relevant data.

2. Reporting to Tax Authorities: Momentum to is required to provide regular reports to the tax authorities of the EU countries where it operates.

3. Compliance Assurance: Momentum to needs to ensure that our service providers and customers are aware of tax obligations and comply with applicable law.

4. Reputation: Failure to comply with DAC7 obligations may affect our platform's reputation, especially if it is seen as uncooperative with tax authorities.

It is important to note that tax rules and regulations may vary between EU countries, and we must be aware of the specifics of each jurisdiction in which we operate. In addition, tax laws can change over time, so it is essential that we stay current and comply with ever-evolving regulations.