DAC7 vs 1099-K: Platform Income Reporting
Updated 2026-10-08
DAC7 and Form 1099-K do the same job on different sides of the Atlantic: the platform, not the seller, reports your income to the tax authority. In the EU, DAC7 makes platforms report seller data to a member-state tax authority by 31 January of the following year, with no dollar-style trigger for services and a goods exclusion below 30 transactions and €2,000 a year. In the US, the federal 1099-K reporting threshold reverted under the One, Big, Beautiful Bill to over $20,000 in payments and more than 200 transactions, and your state may have a lower threshold. Both regimes are information reporting only; neither creates a new tax.
Unsure if these rules apply to you?
Two regimes, one idea
Both regimes exist because tax authorities were tired of taking platform sellers' word for their income. Under DAC7 the platform files an annual report naming its EU sellers with identity data and yearly totals. Under US rules the payment side files Form 1099-K with the IRS and sends a copy to the seller. In both cases the seller still files their own tax return; the platform report is the cross-check, not a tax bill.
Who files differs. DAC7 reports come from the platform operator itself, including non-EU marketplaces that serve EU sellers. A 1099-K comes from a third party settlement organization, the card and wallet layer that moves the money, which for marketplace sellers is usually the platform's own payments arm.
Thresholds compared
US, federal level: a TPSO must file a 1099-K when a seller's gross payments exceed $20,000 and the transaction count exceeds 200 in a calendar year. This is the threshold the One, Big, Beautiful Bill restored for 2026 after years of phased reductions. A platform may still issue a 1099-K below the threshold, and several states oblige it to: your state may have a lower reporting threshold, which can produce a form even when the federal line was never crossed.
EU: there is no euro amount that switches DAC7 on for services. Ride-hailing, delivery and freelance income is reportable from the first booking. The only seller-side numbers are for goods: fewer than 30 transactions and less than €2,000 in a year lets the platform leave a goods seller out of the report. Both conditions must hold, and the exclusion is the platform's choice, not a right you claim.
Deadlines and what you receive
DAC7 platforms report to the tax authority of their single registration member state by 31 January of the year after the reportable period, and they must inform sellers of the reported information before it goes out. You get a notification, not a tax form, and you can ask for corrections before filing.
TPSOs must file 1099-Ks with the IRS and furnish copies to payees in January for the prior calendar year. The form arrives whether or not you crossed the federal threshold if a state rule or a platform decision put you under it. Keep the form with your tax records; it is not an invoice and filing it is not a substitute for your return.
What it means for your taxes
Neither regime taxes you by itself. DAC7 states plainly that it does not impose any new tax; 1099-K is an information return, and the IRS says receiving one does not by itself determine your tax liability. What both do is remove the doubt: gross platform totals now sit in a government database.
Gross is the operative word. A 1099-K shows the full amount processed, before fees, refunds and shipping. Your taxable figure is your net profit, which you calculate yourself. The same logic applies under DAC7, where the report shows consideration paid or credited to you, and your tax rules decide what part of it is income.
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
Do I have to report my eBay or Etsy income on a 1099-K?+
You do not file the 1099-K; the payment side does. If your sales cross the federal line of over $20,000 and more than 200 transactions, you will receive a copy. Below that, you may still get one if your state has a lower threshold or the platform issues forms voluntarily. Your eBay and Etsy income is taxable regardless of whether a form shows up.
What is the 1099-K threshold for 2026?+
The federal reporting threshold reverted to over $20,000 in total payments and more than 200 transactions under the One, Big, Beautiful Bill. A TPSO may still send a Form 1099-K for amounts lower than the thresholds, and state thresholds can be lower still.
Does DAC7 apply to US platforms like eBay or Etsy?+
Yes, for their EU business. A platform with EU reportable sellers and no EU establishment registers as a non-Union platform operator in one member state and reports its EU sellers there. US sellers on those platforms are outside DAC7; your 1099-K rules govern the US side.
Is a 1099-K the same as DAC7 reporting?+
They serve the same purpose but differ in mechanics. DAC7 is a directory-level annual report by the platform to one EU member state covering all its EU sellers. A 1099-K is a per-seller information return filed with the IRS by the payment processor. DAC7 notifies sellers before reporting; a 1099-K copy arrives around filing time.
Do I pay tax twice if both DAC7 and 1099-K apply to me?+
No. Both are reporting mechanisms, not taxes. If you sell in the EU and the US, the same income may be visible to two tax authorities, and double taxation is resolved through the tax treaty between the two countries, not through the reports themselves.
What if my 1099-K shows amounts below the threshold?+
Keep it and file as usual. A TPSO may still send a Form 1099-K for payments for goods or services below the thresholds, and a state with a lower threshold may require it. The form's gross amount is not your taxable income; report your net profit on your return.
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