DAC7 and UK reporting guide
DAC7 and its UK equivalent are a set of rules that affect how services like Ko-fi need to report the earnings of certain users.
This means that if you live in the UK or EU and meet certain thresholds while selling using Ko-fi, we have to share details about your income with the relevant tax authorities where you live.
Who do these rules apply to?
If you're a creator living in the UK or one of 27 EU countries and you earn above a certain threshold using Ko-fi's service this applies to you.
The thresholds set for you to be included are:
- Completed 30 or more sales of physical items within the calendar year*
- Sold over €2000 or £1700 worth of physical items within the calendar year*
- Sold any personal services within the year
*We will ask you for information if you meet these thresholds on a pro-rata basis.
What do you have to do?
Reporting happens annually in January. If you reach the thresholds (or on a pro-rata basis look like you will within the period) then during the calendar year we’ll ask you to complete a secure form to tell us some basic information about you plus your Tax Identification Number (TIN) or National Insurance (NI) number. See FAQ for more details.
What happens after I provide my information?
In January we will create a simple report showing you what information is being sent. You can view this report in your Ko-fi Account Settings. Just head to More > Account & Billing. Before the end of January each year we combine all reports and send them off to the tax authorities. If your sales don't meet the threshold by the end of the period your information will not be sent.
How often do you need to provide this info?
These rules require yearly reporting, so providing you meet the threshold we'll ask you for your information each year. The info for a specific year will be reported the following January.
In the UK, the reporting process is similar. If you meet the thresholds, we will reach out to you via email before the end of the year to request the required information.
What if I don't provide this info?
We will give you as much time as we can to provide the information. If our records show you fall within DAC7 or the UK equivalent rules we are legally required to share whatever information we have. If after a series of attempts to retrieve the information we don’t hear from you, we may be required to suspend access to your page.
Do you still have questions?
We know tax rules can be confusing, so if you're unsure, it's best to talk to a local tax advisor. If you have questions about the process of reporting on Ko-fi, feel free to create a ticket and we will do our best to help.
Frequently Asked Questions (FAQ)
These rules apply to creators who live in the UK, or live in the EU and reach the thresholds for reporting. If you meet that criteria we'll reach out to you by email before the end of the year. There’s no need to contact us if you meet the thresholds earlier in the year, we'll let you know when it's time.
DAC7 applies if you're a resident of any of the 27 EU countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
UK service reporting applies to UK-based creators.
If you meet the criteria for inclusion in the report, we need to share the following:
- Your name and address
- Your date of birth
- Income earned
- Fees paid to Ko-fi
- Your Tax Identification Number (TIN)
- VAT number, if applicable
- For businesses, we will also need to share the company registration info.
No, even if you meet the reporting criteria, Ko-fi does not deduct income taxes or remit taxes on your behalf. You are responsible for managing your own tax obligations as set out in Ko-fi's Terms of Service.
No, according to the EU DAC7 website, “DAC7 does not impose any new tax or in any way regulate the taxation of income earned by sellers on digital platforms.”
Yes. Please contact support who will provide a link to update your information.
No, if your primary address is not in the EU or UK, these reporting rules don’t apply to you.
Yes, Ko-fi is obligated by these laws to report the information we have for applicable creators using the service during the period.
Take a look at the DAC7 Guide from the European Commission.
Find out more about UK Rules.
Learn more about the model rules for digital platforms.