DAC7 Implemented do Americans have to?

I got the new email today. So I went back in to retake the interview survey and this time I selected yes and filled out the form. Sounds like it doesn't matter if you live in EU or not (I'm USA). It's a fairly simple form, just have your TIN (tax payer identification number) ready and everything else is just name/address etc. *and like others have said, if you don't see your country in the drop down list, just wait a few days and try again

 

I selected no when I saw the prompt back in December because I thought it didn't apply. After I got the email today, I went back in to retake the survey, and it isn't letting me select yes or no on my eligibility. The section is just blank now. Anybody know what to do about this? I already emailed about it and have gotten no response yet, of course.

 

The email was misleading, it pre-fills yes and hides it. No one (that I've spoken to) can see the option anymore.

 

Thank you! I've been going nuts seeing this form pull up a 12 year old address, and then see that other people have access to that question, and I don't.

 

Just looked at the link and there is a later date this is due. 4/30/23. Going to wait and let this play out. I still believe as US citizens we are not required to do this.
The EU has recently implemented the DAC7 directive that requires EU and non-EU digital platform operators to report users’ taxable income. To be in compliance with this directive, please complete a DAC7 tax interview by clicking the button below no later than April 30, 2023, regardless whether you are an EU resident. If you do not complete the required action by then, you may be ineligible to continue to use MTurk, which could also result in withheld payments.

 

I've been watching "DAC7" on Twitter which seems to align with MTurk Help page explanation:

Do you collect tax reporting information from non-US based Workers?

Yes, all non-U.S. based Workers are required to provide their tax information through a tax information interview before doing any work on Mechanical Turk just as U.S. Workers are required to do. The tax information interview collects the U.S. tax status (for U.S. person or non-U.S. person), the name, and the permanent residence address of the individual that will report the income on an income tax return.

This article outlines the difficulties/confusion somewhat:

The impact of DAC7 and DAC8

FW: In what ways are the new rules likely to force certain companies to adjust their processes to ensure ongoing compliance? What advice would you offer to those seeking to prepare accordingly?

Tiffon: Both DAC7 and DAC8 require digital platform operators and cryptoasset providers to put in place a due diligence process to collect and declare specific information about their users. From a compliance perspective, they will need to condition access to their platforms on obtaining verifiable data from those prospective users. As this is an ongoing exchange of information, this will also require digital platform operators and cryptoasset service providers to maintain up to date reliable data about their users. We are likely to see a process that is similar to the application of know your customer (KYC) and anti-money laundering (AML) principles for certain service providers. Users who fail to provide or update the necessary information will be unable to use the process.

That said I have been wrestling with Amazon on the descriptions my direct deposits (every three days) are showing up on my bank statements. Amazon is in the midst of changing "payment" to "EDI payment" as task/time workers now fall under the category of "Seller." These difficulties began about the same time as the first appearance of the DAC7 interview showed up.

Since the beginning of Feb '23 - Amazon Mechanica EDI PYMNTS ... full name

AMZN... Mturk Paym ... no name

NAME UNAVAILABLE EDI PYMNTS ... with full name [?!]

For years AMZN... Mturk Paym ... no name

 

All I know is what they told me: My tax info will be sent to the EU, the EU considers all my mturk income as taxable and they anticipate more foreign states to engage in the taxing of my mturk income. It just seems so wrong....

 

[QUOTE="...the EU considers all my mturk income as taxable and they anticipate more foreign states to engage in the taxing of my mturk income...[/QUOTE]

The EU only considers EU citizen MTurk income as taxable. In order to sort out US citizens from non-US citizens, all platform workers must declare their tax status i.e. Social Security numbers. This is an obligation Amazon must meet.

I do think part of the on again / off again DAC7 notice on our dashboards is likely related to Amazon changing of our direct deposit descriptions. What will the EDI mean?

1099s for turkers making more than $600 per year perhaps? I don't know but that's 10s of thousands of 1099s being issued, a big expense. I just hope they don't jettison MTurk altogether or raise requester fees.

Is anyone else with direct deposit noticing changes in descriptions?

 

DAC 7: What challenges do digital platform operators face?
The sixth amendment to the EU Directive 2011/16/EU on administrative cooperation in the field of taxation, DAC7, is a directive that standardises reporting obligations for all digital platform operators in the EU. It aims to promote tax transparency and prevent tax evasion and avoidance by those selling through platforms such as Airbnb, Amazon, Booking.com and Uber.

Technical challenges in compiling the data-sharing file
... The data must be shared with platform sellers before submission to the authorities, which creates many challenges for 1099 reporting in the US. Platform operators must create and localise the tax summaries for platform sellers and customise their layout and language.

Source: news.bloombergtax.com

 

I certainly hope you are right, and the agent that responded to me was wrong. For context, here is what I asked them:

"Thank you for your prompt response. I am curious what constitutes taxable income from the perspective of the European Union. I am a US citizen, predominantly working for US requesters. Is all my income from mturk deemed as taxable by the EU? Am I to pay taxes on my income to both the US and the EU?"

Here is what they responded:

"All Mturk income is deemed as taxable by the EU and we also anticipate this to be rolled out to much wider than just the EU."

According to the agent at AWS that responded, it is the intention of the EU (and perhaps other foreign entities down the line) to tax mturk workers, regardless of their citizenship status

 

This doesn't make any sense at all ... of course all mturk income is taxable but not doubly taxed or instances of having to pay multiple taxes .

I do recall reading about limitations to income which falls under DAC7, will try to track it down.

As for AWS agents, it took me several agents to get a straight answer on the issues of deposit descriptions, I just kept asking for a supervisor so proceed with caution on that front.

 

Perhaps it is an issue of what country the requester is based in ... how can a turker separate requesters into just US corporations / universities? If I work for an EU based requester do I pay tax to that country?

 

I believe (and certainly could be wrong) that since Amazon has a physical presence in the EU, that all "sellers" on the Amazon platform are subject to EU taxation. I, like yourself, find this confusing, frustrating and highly suspect. Personally, I am not ready to become a global citizen, but it would appear that this is the push that is taking place.

 

This easy reader site sums it up neatly. It seems to me it's only Turkers based in the EU ... Hope it is correct. Brackets [ ] are mine.

Under the DAC7, digital platforms are required to report information on certain sellers using their interface to make reportable cross-border taxable supplies in the EU. The authorities will be using these reports moving forward to compare the data with VAT reports and track down any non-compliant activity.

The activities covered by the reporting obligation are the sale of goods, the rental of mode of transportation, the supply of personal services [including time and task based services] and the rental of immovable property.

The new obligation also applies to non-EU online platforms [Amazon] facilitating supplies for EU-based sellers notably. This means that all marketplaces facilitating supplies of goods and services in the EU may be within the scope of this new reporting liability.

To comply with their new reporting obligations, digital platforms will need to identify reportable sellers, perform due diligence, and inform their sellers when their information is to be reported to the authority.

Reportable data needs to be submitted to the authority by the 31st January of each year following a calendar year. This means that the first DAC7 return will be due by platforms by the 31st January 2024 in respect of the year 2023.

 

Yeah, I don't think those of us that are based in the US are "reportable sellers" based on this article. I hope it's so!

 

I am mistaken here. Amazon is NOT a non-EU online platform it is a multinational corp.

 

Yep, you nail the issue exactly. I'm backtracking here, see above post/my bad.

Amazon in Europe is very much a presence

 

Uh oh!! See additional posts! I am mistaken here. Amazon is NOT a non-EU online platform it is a multinational corp.

Amazon in Europe is very much a presence

 

Moving onward to the definition of casual seller

January 6 2023
Digital platforms: new reporting obligations under DAC 7 {now behind a registration wall!, sorry!)
Elias Neocleous & Co LLC | European Union

The reporting obligations also do not extend to casual sellers where the platform operator facilitated less than 30 relevant activities by means of the sale of goods and for which the total amount paid or credited to the seller did not exceed a total of €2000 during the relevant reporting period.

 

Definition of:
B. Reportable Sellers

1. A “Seller” is a Platform user that is registered at any moment during the Reportable Period on the
Platform for the provision of Relevant Services.

2. An “Active Seller” is any Seller that either provides Relevant Services during the Reportable
Period or is paid or credited Consideration in connection with Relevant Services during the Reportable
Period.

3. A “Reportable Seller” is any Active Seller, other than an Excluded Seller, that is resident in a
Reportable Jurisdiction or provided Relevant Services for the rental of immovable property located in a
Reportable Jurisdiction or is paid or credited Consideration in connection with Relevant Services for the
rental of immovable property located in a Reportable Jurisdiction, as determined based on the due
diligence procedures set out in Section II.

4. An “Excluded Seller” is any Seller:
a) that is an Entity for which the Platform Operator facilitated more than 2,000 Relevant Services for
the rental of immovable property in respect of a Property Listing during the Reportable Period;
b) that is a governmental entity; or
c) that is an Entity the stock of which is regularly traded on an established securities market or a
related Entity of an Entity the stock of which is regularly traded on an established securities market

plus

D. Determination of jurisdiction of residence of Sellers
1. A Reporting Platform Operator must consider a Seller resident in the jurisdiction of the Seller’s
Primary Address.
2. Notwithstanding subparagraph D(1), a Reporting Platform Operator must consider a Seller
resident in each jurisdiction confirmed by a Government Verification Service pursuant to subparagraph
B(3).