End-to-end freelancer tax compliance under DAC7

Aligning with EU Legal Standards

The European Union’s DAC7 directive mandates that digital platforms report the income generated by their users to the relevant tax authorities. At Remotify, we deliver seamless freelancer tax compliance by fully aligning with DAC7, so your invoices and payouts stay EU-law ready.

This transparency underpins a secure, global payment platform for freelancers that regulators and users alike can trust. There are no hidden surprises. 

Learn more about this Global payment platform for freelancers.

What is DAC7 and why does it matter for multi-currency invoicing?

DAC7 is an EU directive designed to enhance tax transparency and compliance in the digital economy. It requires digital platforms to collect and report user information related to:

• The sale of goods,
• The provision of services,
• Rental of immovable property,
• Rental of transportation equipment.

Under DAC7, platforms must report user data to their local tax authority. Remotify submits to Estonia’s MTA-helping users meet EU DAC7 compliance with zero admin effort. For Remotify, this is the Estonian Tax and Customs Board (MTA).

A Regulated Platform for Peace of Mind

By complying with DAC7, operates as a regulated employer-of-record-style virtual company, offering:

• Assurance that the platform complies with EU legal requirements,
• Transparency for users conducting transactions through the platform.

DAC7 compliance is not just a legal obligation but a commitment to creating a trustworthy and secure platform for our users.

What Information Do We Collect?

As part of DAC7 compliance, Remotify collects the following user information:

• Identification details,
• Tax Identification Number (TIN),
• Income details generated through the platform.

We use this data solely for DAC7 reporting and guard it under GDPR, reinforcing our reputation as a trusted freelancer invoicing platform.

Your Data is Secure

Data security and privacy are top priorities at Remotify. To ensure your information is protected:

• We store all data in compliance with the EU General Data Protection Regulation (GDPR),
• We only process and share data required for legal compliance,
• Our modern security infrastructure safeguards your personal information.

DAC7 FAQ: your freelancer tax compliance questions answered

What is DAC7?
DAC7 is a European Union directive that requires digital platforms to report user income to the appropriate tax authorities.

What does Remotify do under DAC7?
Remotify collects required user information and reports it to the Estonian Tax and Customs Board (MTA), as mandated by the directive.

Does this process affect my tax obligations?
DAC7 covers platform-level reporting; you remain responsible for any additional local taxes, but our freelancer admin automation tools make record-keeping effortless.

Is my data secure?
Yes, all data is stored and processed in compliance with GDPR standards and used only for DAC7 reporting purposes.

Transparency, reliability, and DAC7 compliance for freelancers

At Remotify, DAC7 compliance is a testament to our commitment to transparency and adherence to legal standards. By aligning with DAC7, we guarantee a secure, regulated, and trustworthy cross-border freelancer payments environment for every transaction.

For more details on DAC7 compliance for freelancers or VAT-ready invoicing, contact us at info@remotify.co