Creating and checking a DAC7 report

Creating a DAC7 report

1. Go to the Financial module, in the Reports submenu you will find DAC7.
2. Click ‘new’ to create a report.
3. Choose the year you want to create the report of.
4. Choose the nexus that applies.
5. Generate the report.

Nexus

The nexus is the reason why you are required to provide a DAC7 report. There are several options, with most companies falling under Nexus option 1.

1. Resident of EU member state: your company is incorporated in an EU member state.
2. Incorporated under EU member state laws: not statutorily established in an EU member state, but European law applies.
3. Place of management in an EU member state: the effective management of your company is carried out from an EU member state.
4. Permanent establishment in an EU member state: your business has a permanent location in an EU member state.
5. Rental of property in an EU member state: the object owners active through your platform are residents of an EU member state or rent out property in an EU member state.

Checking a DAC7 report

In the report, you'll see several sections, which we'll discuss in more detail below. You will also see notifications, which indicate missing or invalid data. Using the ‘solve’ button, you can navigate to where you can complete or modify this data. You can check all valid invoices, objects, or owners, and mark them as ‘checked’. Checking is necessary to make the report final. It is worth noting that if an invoice is considered invalid, this will cause the parent object and its owner to become invalid as well.

However, an object with only valid invoices may also be invalid if, for example, the object's address is not unique (the same address for multiple objects). Owners with only valid objects can also be marked as invalid if, for example, a tax identification number is missing.

Report data

1. This report data is taken from your Administration data, and you can complete and change it as necessary via the ‘Edit’ button.
2. A yellow notification will be given if anything is missing.

Reportable owners

1. All owners who have received a payout (settlement) are reportable owners.
2. At the top you can see how many reportable owners you have in total, how many are valid, and how many have been checked.
3. An owner is valid if: all reportable owner data have been entered, and the underlying objects are valid.
4. The ‘View’ button takes you to the overview page of all owners. You can search by name, and filter by status.
5. Click on an owner's name to open their detail page. Here you can view and edit the reportable owner data and view the status of the underlying objects.
6. If an owner's underlying objects are valid, you can also mark them as checked here.

Object listings

1. All objects (with an owner) that have been rented out and for which a payout has been made are reportable.
2. At the top, you can see how many object listings you have in total, how many are valid, and how many have been checked.
3. An object is valid if: all object listing data has been entered, and the underlying invoices are valid.
4. The ‘View’ button takes you to the overview page of all objects. You can search by object name and filter by status.
5. Click on the object's name to open the detail page. Here you can view and edit the object listing data and see the list of invoices associated with this object.
6. An invoice may also require an action, for example if an invoice has been manually modified. You must then derive the amounts yourself from the linked invoice.
7. Click on the invoice date to edit the amounts. Here you will also find the ‘Open linked invoice’ button to view the original invoice.
8. Click ‘Ignore’ to remove the message, enter the amounts according to the linked invoice, and click ‘Save’. You will see that the invoice then becomes valid in the DAC7 report.

Functionalities in the full release:

• Ability to export in XML format.
• Direct link with Digipoort of the Dutch tax authorities, to submit the report without having to export.
• Support for rent settlements covered by Pool agreements.
• Ability to show reported amounts to the owner via the Owner portal.
• Ability to remove owners from the DAC7 report, for example if their property is a moveable property.

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