What are the different tax reporting obligations in the EU and in Canada?
The EU abides by DAC7, which is a tax directive that came into effect on January 1, 2023 that requires digital platform operators – generally, platforms that enable the sales of goods and services by connecting sellers with buyers – to report certain information about their sellers to tax authorities. Additionally, this information is exchanged among other EU Member States.
In 2024, Canada implemented Reporting Rules for Digital Platform Operators, an equivalent tax directive to DAC7, for digital platform operators like GOAT to report certain seller information to the Canadian tax authority.
Who is affected by these reporting obligations?
The EU and Canada’s tax reporting obligations apply to digital platform operators that are managed, incorporated, or permanently established in the EU or Canada. These reporting obligations also apply to digital platform operators that are not based in these countries, but operate or have buyers or sellers located there.
Under these reporting obligations, GOAT is required to report certain personal and transactional data of sellers who, in one calendar year, have made transactions over the following thresholds, depending on their country of residence:
- EU: EU sellers who, in one calendar year, have made 30 or more transactions or whose transactions exceed €2,000 in revenue, net of fees.
- Canada: Canadian sellers who, in one calendar year, have made 30 or more transactions or whose transactions exceed CAD 2,800 in revenue, net of fees.
Sellers in the EU and Canada with less than 30 transactions and whose transactions do not exceed the revenue threshold, net of fees, in one calendar year, are not subject to these reporting rules.
How are my sales calculated for reporting purposes?
For reporting purposes, your sales total will equal the amount received from your transactions. The following amounts are excluded from your sales’ calculation: any shipping amounts paid to GOAT, VAT collected and remitted by GOAT, VAT charged on fees, and any amounts deducted by GOAT for fees, or canceled or returned orders.
Is there any impact on my tax obligations?
The tax reporting obligations for GOAT do not impact nor change a seller’s personal tax obligations; however, sellers should be sure to monitor their transactions to comply with any relevant reporting obligations that may be required based on their total sales activity. Such reporting obligations only address whether GOAT must report certain personal and transactional data of its sellers to the relevant tax authorities.
Please note that GOAT Group is not a tax consultant and does not provide tax advice. For specific questions regarding your taxes, please reach out to your tax advisor or accountant.
What information is reported?
The information collected and shared with the relevant tax authorities (listed below) is dependent on whether you are an individual seller or a legal entity/business.
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Individual Sellers |
Legal Entities/Businesses |
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First and Last Name |
Business/Legal Entity Name |
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Primary Address |
Primary Address |
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Member State Residence |
Member State Residence |
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Date of Birth |
Business Registration Number |
|
Tax Identification Number (or Place of Birth if TIN is not available - EU only) |
Tax Identification Number |
|
VAT Identification Number (if applicable - EU only) |
VAT Identification Number (EU only) |
|
GST Number (if applicable - Canada only) |
GST Number (Canada only) |
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The total amount paid or credited to the seller, excluding fees paid to GOAT, any refunds or canceled orders, or VAT collected by GOAT. |
The total amount paid or credited to the seller, excluding fees paid to GOAT, any refunds or canceled orders, or VAT collected by GOAT. |
|
Total Number of Transactions |
Total Number of Transactions |
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Total fees, commissions charged, and taxes withheld by GOAT. |
Total fees, commissions charged, and taxes withheld by GOAT. |
|
Bank account number where sales’ proceeds are paid. |
Bank account number where sales’ proceeds are paid. |
As part of GOAT’s tax reporting obligations, GOAT is legally required to collect your Tax Identification Number (TIN) or place of birth if you are an individual and don't have a TIN. If you do not have a TIN, you may be able to apply for one by reaching out to your local tax authority or a tax professional.
Please note that your TIN is different from a VAT Identification Number. If you are required to provide a TIN and choose not to, your account may be subject to cashout freezes or restricted selling privileges.
