1. What is Dac7 regulation and how does it apply to Whoppah?
Dac7 refers to the European Directive on compulsory automatic exchange of information in the field of taxation. Whoppah, as a platform that uses Stripe as its payment service provider, is obliged to collect and pass on certain information about transactions to the tax authorities.
2. What data is collected under Dac7 regulations on Whoppah?
Through payment service provider Stripe, data such as seller identification, transaction amount and other relevant information is collected. This data is necessary to comply with Dac7 requirements and to provide transparency to tax authorities.
3. Why does Whoppah / Stripe request this data for tax purposes?
Stripe, as a payment service provider, is responsible for complying with tax regulations, including Dac7. By requesting and passing this data to the tax authorities, Stripe helps Whoppah comply with its legal obligations.
4. As a seller, do I need to take action regarding Dac7 regulations on Whoppah?
As a seller, you need to ensure that the information in your Whoppah account is accurate, as this data will be used for reporting to the IRS. Make sure you have entered all required information correctly.
In addition, it is important to know that Whoppah may request additional verification in specific situations, when you have performed 30 transactions or more or when the total sales amount exceeds 2,000 euros. In such cases, the customer is asked to upload additional information securely via the Stripe platform. This upload procedure is secured to ensure users' privacy and data security. It is advisable to respond timely and accurately to any verification requests to maintain a smooth transaction experience and comply with applicable legal obligations.
5. How does Whoppah ensure the security of my data in accordance with Dac7 regulations?
Whoppah and Stripe implement strict security measures to ensure that collected data is stored and transmitted securely. They take the necessary steps to ensure user privacy and comply with relevant data protection laws and regulations.
6. What does the tax authority do with the data and do I have to pay tax on it?
The data provided in accordance with the Dac7 regulations is used by the tax authorities to monitor tax transactions and ensure that taxes are correctly paid. As a private seller who occasionally sells personal property, it is not normally required to pay tax on this income.
Tax liability generally applies when acting professionally, with sales made on a regular basis and for profit. If you act professionally as a seller, you should consult the relevant tax rules and obligations in your jurisdiction. It is always wise to seek advice from a tax advisor to be sure of the specific rules that apply to your situation. Keep in mind that tax laws vary by country and region.