Amazon, eBay, Etsy, Vinted and other online marketplaces now report seller income to Revenue every year. This guide explains who is caught, who is excluded, what the platforms share, how to check their figures, and what it all means for your tax, VAT and record keeping.

Key takeaways

DAC7 is a reporting rule for platforms, not a new tax. Online marketplaces must collect your details and report what you earned through them to Revenue each year.

The goods “excluded seller” test is narrow. A platform does not report you only if you made fewer than 30 sales and received no more than €2,000 on that platform in the calendar year. Cross either line and you are reported.

Being excluded does not make income tax-free, and being reported does not automatically mean you owe tax. Your tax position depends on whether you are trading, not on whether a platform reports you.

Revenue now sees platform data for every reportable seller, including Irish sellers on platforms in other EU countries and the UK. Records that match what the platforms report are your best protection.

What is DAC7?

DAC7 is the seventh amendment to the EU Directive on Administrative Cooperation (Council Directive (EU) 2021/514). It requires digital platform operators to collect information about the people and businesses selling through them and report it to tax authorities once a year. The OECD’s equivalent framework, the Model Reporting Rules for Digital Platforms (MRDP), extends the same approach to countries outside the EU.

Ireland brought DAC7 into law through Sections 891I and 891J of the Taxes Consolidation Act 1997, supported by S.I. No. 705 of 2022 and S.I. No. 674 of 2023. The first reportable year was calendar year 2023, so platforms have now filed several years of seller data with Revenue.

Which activities are covered?

DAC7 applies to platforms that allow sellers to connect with customers for four types of “relevant activity”:

• Sale of goods: the category that matters most for e-commerce retailers (Amazon, eBay, Etsy, Vinted, Depop, DoneDeal-style marketplaces and similar).
• Rental of immovable property: short-term lets and other accommodation.
• Personal services: time- or task-based work such as freelancing, deliveries or tutoring arranged via a platform.
• Rental of any means of transport: cars, vans, boats and so on.

The annual timeline

When	What happens
1 January – 31 December	The reportable period. Platforms track your sales, the consideration paid to you and the fee charged, quarter by quarter.
By 31 January (following year)	Platforms file their DAC7/MDRP return with Revenue (or the tax authority where they are based) and must give each reportable seller a copy of the information reported about them.
By end of February	Revenue exchanges the data with the tax authorities of other EU Member States and MDRP partner jurisdictions (currently the UK, Canada and New Zealand).

In practice, this means that if you are an Irish-resident seller using a marketplace based in Luxembourg, Germany or the UK, your sales data still reaches Revenue.

Who is an excluded seller?

Revenue’s guidance lists four categories of seller that platform operators do not have to report. These are exclusions from the platform’s reporting duty, not exemptions from tax.

Excluded seller	What it means in practice	Relevant to most online retailers?
Government entity	Public bodies selling through a platform.	No
Entity listed on a stock exchange	Publicly traded companies (and, under the rules, related entities).	No
Large-scale property host	A seller renting the same property listing more than 2,000 times in the period, e.g. a hotel. Applies to property rental only.	No
Low-volume seller of goods	A seller of goods with fewer than 30 sales and total consideration of no more than €2,000 in the reportable period.	Yes: this is the test that matters.

How the 30-sale / €2,000 test works

The goods exclusion is where most confusion arises, so it is worth being precise:

• Both conditions must be met to be excluded. You need fewer than 30 sales and no more than €2,000 of consideration. Thirty or more sales of any value, or more than €2,000 from any number of sales, makes you reportable.
• It is tested per platform. Each marketplace applies the test to your activity on its own site. You could be excluded on one platform and reported on another.
• It is tested each calendar year. Being excluded one year says nothing about the next. If you cross the threshold again, you are reported again.
• It only applies to sales of goods. There is no equivalent low-volume exclusion for personal services or transport rental. A seller who also offers services through a platform can be reported for those activities regardless of volume.
• “Consideration” is measured after platform deductions. Revenue’s Tax and Duty Manual defines consideration as compensation in any form, net of any fees, commissions or taxes withheld or charged by the platform. The platform also reports those fees separately.

Revenue’s own worked example

Year	Number of sales	Total consideration	Excluded seller?	Why
2023	2	€2,200	No	Consideration over €2,000
2024	35	€1,750	No	30 or more sales
2025	32	€2,500	No	Both limits crossed
2026	15	€1,500	Yes	Under both limits

Platform 123 reports John for 2023, 2024 and 2025 but leaves him out of its 2026 return. If his activity rises again in 2027, he goes straight back into the return. Note that 2023 shows how just two high-value sales can make someone reportable.

Excluded does not mean tax-free

The excluded-seller rules only decide whether a platform has to report you. They do not change whether you owe income tax, corporation tax or VAT. A trader who makes 20 sales totalling €1,900 may be excluded from DAC7 reporting and still have taxable trading profits to declare. Equally, being reported does not in itself mean tax is due.

What platforms collect and report

Information you will be asked for

To meet their due diligence duties, platforms must collect the following from sellers (platforms re-check it if it has not been verified in the last 36 months or if they suspect it is wrong):

Individual sellers	Entity sellers (e.g. a limited company)
First and last name	Legal name
Primary address	Primary address
Date of birth and place of birth	Business registration number (e.g. CRO number)
All tax identification numbers (TINs), e.g. PPSN, and the country that issued them	All TINs and the country that issued them
VAT number, if registered	VAT number, where available, and details of any permanent establishments in the EU

Information reported to Revenue

For each reportable seller, the platform’s annual return includes:

• Identifying details: name, address and TIN
• Total consideration paid or credited to you in each quarter
• The number of relevant activities (sales) in each quarter
• Fees, commissions or taxes withheld or charged by the platform in each quarter
• Your financial account identifier (e.g. the IBAN you are paid into), where available
• Your country of residence

Because the data is quarterly and tied to your bank account and PPSN or company number, it can be matched against your tax returns, VAT returns and bank records.

What if you do not provide your details?

Platforms are not optional about this. Under Revenue’s guidance, if a seller has not supplied the required information after two reminders and 60 days, a platform that handles payments must withhold payment and suspend the account, while other platforms must close the account and block new ones until the information is provided. Platforms face their own penalties for incomplete or late returns: €19,045 plus €2,535 for each day the failure continues. That is why marketplaces take DAC7 information requests seriously, and so should you.

Hobby seller or trader? The question that decides your tax

DAC7 does not create any new tax, but it does give Revenue visibility of online sales it may not have seen before. The key question for tax purposes is whether your selling amounts to a trade.

Selling your own belongings

Clearing out a wardrobe on Vinted or selling an old bike on eBay is generally not trading. Selling personal possessions for less than you paid for them does not produce a profit, and there is a capital gains tax exemption for tangible movable items (chattels) sold for €2,540 or less. Occasional sales of this kind rarely give rise to tax, even if the platform reports you.

Buying or making to sell

If you buy stock to resell, make products to sell, or sell regularly with a view to profit, you are likely to be trading. Revenue looks at factors commonly known as the “badges of trade”, including:

• Profit motive: were the items acquired or made in order to sell them at a profit?
• Frequency and number of transactions: regular, repeated sales point towards trading.
• Nature of the items: stock with no personal use value suggests trading.
• Supplementary work: repairing, improving, packaging or marketing items before sale.
• How long items were owned: quick turnaround between buying and selling.

A trading sole trader must register for income tax and file a Form 11 each year, declaring profits after allowable expenses (stock, platform fees, postage, packaging, software and so on). A limited company declares its profits on its CT1. See our guide to Sole trader vs limited company for e-commerce.

VAT and cross-border selling: the rules that sit alongside DAC7

DAC7 data also gives Revenue a view of turnover, which is directly relevant to VAT. E-commerce retailers should keep an eye on the following:

Rule	Current position (per Revenue.ie)	Why it matters
Irish VAT registration threshold: goods	€85,000 in a 12-month period	Most product sellers must register once Irish-taxable turnover exceeds this.
Irish VAT registration threshold: services	€42,500	Relevant if you also sell services, such as design or customisation.
EU distance sales threshold (One Stop Shop)	€10,000 across all EU cross-border B2C sales	Above this, VAT is due at the customer’s country rate. The OSS lets you declare it through one Irish return.
Marketplace “deemed supplier” rules	In force since July 2021	For imported goods up to €150 and for goods sold by non-EU sellers, the marketplace itself may be liable for the VAT.
Low-value imports (customs)	The €150 customs duty exemption ended on 1 July 2026	A €3 customs duty now applies to each distinct item type in a consignment worth €150 or less. Factor this into landed cost if you import stock or dropship.

Remember that platform reports show consideration net of fees, while VAT thresholds and your accounts work from gross sales. Your records need to reconcile the two. See our VAT and OSS registration for online sellers] page, and our companion guide to Selling imported goods online in Ireland IOSS, deemed supplier rules and the €3 customs duty if you import stock from outside the EU.

Looking ahead: where platform tax rules are going

DAC7 is part of a wider move towards real-time visibility of digital commerce across the EU:

• VAT in the Digital Age (ViDA), adopted by the EU Council in March 2025, extends the “deemed supplier” model to platforms facilitating short-term accommodation and passenger transport from 1 July 2028, and expands single VAT registration through the One Stop Shop from the same date.
• Digital reporting and e-invoicing for cross-border B2B transactions begins in July 2030.
• MRDP partner countries continue to expand. The UK, Canada and New Zealand already exchange platform data with EU Member States.

The direction is clear: tax authorities will increasingly receive transaction data directly from third parties. Sellers whose own records match that data will find compliance straightforward; those whose records do not will face questions.

Illustrative scenarios

The following scenarios are illustrative only. They are not Forti clients, and names and figures are invented to show how the rules apply.

Scenario 1: The wardrobe clear-out (excluded, no tax)

Aoife sells 18 items of her own used clothing on a resale app during 2026 for a total of €640, having originally paid far more for them. She is below both limits on that platform, so she is an excluded seller and will not appear in its DAC7 return. More importantly, she is disposing of personal possessions at a loss, not trading, so no income tax or CGT arises either way.

Scenario 2: The side hustle that grew (reportable, and trading)

Ciarán makes candles at home. In 2025 he sold 22 candles on a craft marketplace for €880, so he was excluded. In 2026 demand grows and by December he has made 140 sales totalling €5,600 after the platform’s commission. He is now a reportable seller for 2026. He will receive a copy of the data by 31 January 2027, and Revenue will receive it too.

Ciarán is clearly trading: he buys wax and jars to make products for profit. He should register for income tax, keep records of materials, packaging, postage and platform fees, and include his profit on his Form 11. Had he been trading in 2025 as well, that year’s profit should also be declared, even though the platform did not report him.

Takeaway: the exclusion in 2025 never meant 2025 was tax-free. If earlier years have been missed, correcting them before Revenue raises a query usually leads to a better outcome.

Scenario 3: The multi-channel limited company (reconciliation matters)

An Irish limited company sells homeware through its own website and two marketplaces. Marketplace A reports 1,900 sales and €96,000 of consideration for the year; Marketplace B reports 210 sales and €11,500. The company’s own website sales are not reported under DAC7, because the company is selling its own goods rather than using a third-party platform.

The company is VAT-registered and uses the OSS for sales to customers in other EU countries. Its bookkeeping records gross marketplace sales and posts platform fees as expenses, while the DAC7 reports show consideration net of those fees. Each year, its accountant reconciles the platform statements to the ledger so that the figures in the CT1 and VAT returns can be explained line by line if Revenue compares them with the DAC7 data.

Takeaway: for established sellers, DAC7 is less about “will I be reported?” and more about “will my numbers match?”.

Reconciling your platform data with DAC7: an eBay example

Each January, a reportable seller receives a copy of what the platform told Revenue. The fastest way to check it, and to make sure your accounts tell the same story, is to use the reports the marketplace already provides. eBay is a useful example: in Seller Hub, the Payments tab has a Reports section where you can download four documents.

eBay report	What it shows	How to use it
Transaction report (CSV)	Every order, refund, fee, credit and payout for a date range you choose, with order numbers and gross and net amounts.	Your main working file. Filter to the calendar year and total the gross sales, fees and refunds.
Payout report	Each payout sent to your bank account and the transactions it covers.	Match each payout to a lodgement on your bank statement.
Financial statement (PDF, monthly)	A summary of orders, claims, refunds, payment disputes, payouts, fees and credits.	A monthly check that your bookkeeping totals agree with eBay’s.
Tax invoice (PDF/CSV)	The taxes applied to eBay’s fees and other charges deducted from your funds.	Support for fee expenses and any VAT on fees in your VAT return.

A simple year-end reconciliation

• Download the transaction report for 1 January to 31 December and total gross sales, refunds and platform fees.
• Work out net consideration: gross sales less refunds and the fees eBay deducted. This should be close to the annual consideration in your DAC7 copy (which shows quarterly totals).
• Compare the number of orders with the number of sales reported for each quarter.
• Tie payouts to your bank. Use the payout report to match every payout to your bank statement, and note any funds still on hold at 31 December, as these explain timing differences.
• Record the differences. Currency conversion, funds on hold, disputes and refunds made after year end are the usual reasons figures do not match exactly. A short note of these is useful if Revenue ever asks.

Amazon, Etsy and most other marketplaces offer similar downloadable reports, so the same approach works across platforms. eBay itself recommends that sellers consult a financial adviser on reconciliation, and this is an area where good bookkeeping pays for itself.

A practical DAC7 checklist for online sellers

• Check your platform details. Make sure your name, address, PPSN or company number, and VAT number are accurate and consistent across every marketplace.
• Track sales per platform. Monitor your sale count and consideration on each marketplace against the 30-sale and €2,000 limits if you are close to them.
• Download platform statements. Keep annual and quarterly reports showing gross sales, fees, refunds and payouts, and reconcile them to your bank each month.
• Review the DAC7 copy you receive. Platforms must send you the information they reported by 31 January. Check it against your own records and query errors with the platform promptly.
• Decide whether you are trading. If you are buying or making items to sell at a profit, register for tax and keep business records.
• Watch your VAT thresholds. Monitor 12-month turnover against the €85,000 goods threshold and your EU cross-border sales against the €10,000 OSS threshold.
• Keep records for six years. Invoices, receipts, platform reports and bank statements should be kept for at least six years.
• Fix the past proactively. If earlier years were not declared, talk to an adviser about making a voluntary disclosure before Revenue makes contact.

How Forti can help

Forti Ltd. is an accountancy firm based in Sandyford, Dublin 18, supporting e-commerce businesses, from first-year marketplace sellers to established multi-channel retailers. We can help you:

• Work out whether your online selling is a trade and register you with Revenue if it is
• Set up bookkeeping that reconciles marketplace statements, fees, refunds and payouts to your accounts
• Register for Irish VAT and the One Stop Shop, and file your returns
• Review past years and prepare a voluntary disclosure where needed
• Decide whether a sole trader or limited company structure suits your growth plans

Find out more about our: E-commerce and Amazon FBA accounting services.

Frequently asked questions