Dear Driver Partners,
We are reaching out to update you on the DAC7 reporting requirements set by the EU. This email will explain the changes, their impact on platforms like FREENOW, and any actions you might need to take.
Understanding DAC7
As you may already know, DAC7 is a European Union directive requiring digital platforms, including FREENOW, to report the earnings of their users to tax authorities. Starting from 2023, all income generated through platforms like ours must be communicated to tax authorities by January 2024. This reporting cycle will recur annually. FREENOW, like other digital platforms, is required to disclose specific details to comply with this regulation, which applies to a variety of sectors. Details of data to be shared can be found here on the Revenue website.
What Do Drivers Need To Do for DAC 7?
We will contact you in advance if we are missing any of the required information.
Important note about VAT
Good news, the commission that you pay to FREENOW already incorporates Irish VAT, which FREENOW remits directly to Revenue. Therefore, you do not need to worry about accounting for VAT on your FREENOW commission. There will be no impact on your FREENOW earnings as a result of these reporting requirements.
However, if you're using other apps or platforms, it's crucial to check how VAT is handled, especially if those platforms invoice from outside Ireland. This is sometimes referred to as “Reverse charge”. If this is the case, you may be obliged to register for VAT and pay VAT at a rate of 23%, which is chargeable on any commission paid to that platform. It's important to understand your VAT obligations to avoid potential fines and interest penalties.*
If you have any questions regarding DAC7 with FREENOW, please feel free to reach out to us, we are here to help.
The FREENOW Team
IN THE TAXI REVIEW You were told that the Taxi Regulator wanted EVERY Driver linked to a dispatcher and every driver to accept card payments .
