DAC7 compliance: How Guesty can help you meet new requirements

The EU’s recent Directive on Administrative Cooperation 7, known as DAC7, is already affecting how vacation rental platforms and property managers handle tax reporting. This article explains what DAC7 means for your property management business and how you can ensure compliance in 2025 and beyond.

What is DAC7 and why does it matter for property managers?

DAC7 is the EU’s latest tax transparency initiative, requiring digital platforms to collect and report information about their sellers’ income. For vacation rental managers, this means platforms like Airbnb and Booking.com must report your rental income to tax authorities. This information is then shared between EU member state tax authorities.

While Guesty doesn’t have direct reporting obligations under DAC7, the directive indirectly impacts many of our users. This new regulation affects:

• Property managers operating in EU countries.
• Non-EU managers listing properties on EU-based platforms.
• Digital platforms facilitating short-term rentals.
• Individual property owners using rental platforms.

How does DAC7 affect your property management business?

DAC7 means significant changes in how booking platforms handle your information. While your property management software provider isn’t directly responsible for reporting under DAC7, platforms like Airbnb and Booking.com will collect more detailed information from you. They’ll need your tax identification number, property addresses, and exact details about your rental activities to create a complete picture for tax authorities.

You’ll need to provide details about every property you manage, including how many days each one is rented and the income it generates. The platforms will also track all the fees and commissions they charge you. This information isn’t just sitting in a database somewhere; it’s being shared with tax authorities across EU member states, which means your rental income reporting needs to be accurate and up-to-date.

Your property management software needs to adapt to help you manage all this new information effectively. On Guesty’s platform, you’ll notice updates to your dashboard and new fields for entering required data. This ensures our users can easily track and report all additional information the booking platforms require.

Additional data collected by booking platforms

• Address of each listed property.
• Land registration number (if applicable).
• Tax Identification Number (TIN) or equivalent.
• The number of rental days for each property.
• The total amount paid or credited to you each quarter.
• Your date of birth (for individuals) or business registration number.
• Fees, commissions, and taxes withheld by the platform.

Addressing DAC7 reporting with Guesty

Guesty ensures our users can seamlessly report and comply with emerging regulations. To that end, we help facilitate the collection of certain data on behalf of the booking platforms you use. We continually update our platform to allow users to easily input and manage necessary information.

Compliance requirements

1. Collect and verify relevant information about your property owners.
2. Submit annual reports (some locations or user categories may require more frequent reporting).
3. Check for specific compliance deadlines for each EU member state and the UK.

Preparing DAC7 data with Guesty in 3 steps

1. Create a reservation report including:
   • Total earnings and number of bookings per property per quarter.
   • Number of rental days per property.
   • Property addresses.
2. Download the report.
3. Copy your VAT ID from the billing information page.

Verifying and submitting your DAC7 data

After exporting your report from Guesty, follow these external compliance steps:

1. Verify the following in your report:
   • Owner details: Legal names, contact information, and tax IDs match government records.
   • Financial accuracy: Reservation income, fees collected, and payout totals align with payment processor statements.
   • Property records: Addresses and ownership percentages match official land registry documents.
2. Format your report: Download the format template required by your government gateway platform, and fill in your data. While formats may differ by country, the most common requirement is an XML-type file. Consult with your tax authority or your tax advisor for specifics.
3. Access the tax platform: Each EU member state and the UK has a designated submission portal (for example, Government Gateway in the UK).
4. Upload and submit: Log into the portal and follow the steps to upload your XML or CSV file. Ensure you receive a confirmation once your file is processed.
5. Keep records: Maintain copies of all reports and submission receipts for future reference or audits.

Like any new regulation, DAC7 compliance may seem daunting, but it’s easily managed with the right tools and preparation. Property managers who embrace these changes early will be better positioned for success in the evolving vacation rental market.

Stay ahead of DAC7 requirements and other reporting needs with our property management software. Our solutions are designed to make compliance simple and automatic.

Learn how our solutions can help your business adapt to these new regulations.