DAC7 / Tax Reporting Policy & Seller Tax Information Notice

Hifiverse.io — Last updated: 7 May 2026 · First reporting period: 1 January–31 December Launch Year · Version 1.0

Quick summary

Hifiverse is a "reporting platform operator" under EU Council Directive 2021/514 ("DAC7"). Even though we charge zero commission on the Marketplace, we still meet the legal definition of a digital platform operator that facilitates relevant activities of EU sellers.
We are required to collect specific information about sellers who cross either of two thresholds in a calendar year and to report it annually to the Bulgarian National Revenue Agency (NRA), which forwards it to the tax authority of the seller's country of residence.
The thresholds: 30 sales OR €2,000 in total consideration in a calendar year.
Information collected: legal name, primary residence, date of birth or business registration data, Tax Identification Number (TIN), VAT number where applicable, financial account identifier (IBAN where applicable), and per-quarter consideration paid.
The same framework applies to sellers in the United Kingdom (UK OECD Model Reporting Rules, in force from January 2024) and in Norway, Iceland, Switzerland, Canada, Australia and other OECD jurisdictions with equivalent rules.
We do not file the seller's tax return for them. The seller remains solely responsible for their own income tax, VAT, customs duty and any other tax obligation. This Policy is about what Hifiverse must report; it is not tax advice.
First reporting period: calendar year Launch Year. First filing: by 31 January Launch Year + 1.

1. About this Policy

This Policy explains how Hifiverse complies with EU Council Directive 2021/514 (DAC7) as transposed into Bulgarian law, and equivalent rules in the United Kingdom and other OECD jurisdictions.

It is part of the Terms of Service and is read together with the Marketplace Listing Terms (which governs listings and references this Policy in section 12), the Dealer Agreement (which governs business sellers and references DSA Article 30 KYC), and the Privacy Policy (which discloses tax authorities as a recipient of personal data and sets retention periods).

2. The legal basis

EU Council Directive (EU) 2021/514 of 22 March 2021 requires digital platform operators to collect and report information about sellers using their platforms. It applies from 1 January 2023, with first reporting in January 2024.

Bulgaria has transposed DAC7 through Chapter 16a of the Tax-Insurance Procedure Code (Данъчно-осигурителен процесуален кодекс, DOPK), effective from 1 January 2023. The Bulgarian National Revenue Agency (NRA) is the competent authority that receives reports from Bulgarian-resident platform operators.

The United Kingdom introduced equivalent rules from 1 January 2024 through the OECD's Model Reporting Rules for Digital Platforms, administered by HMRC.

3. Why we are in scope despite zero commission

DAC7 applies to platforms that: list goods or services for sale; enable contact between buyer and seller; and play a substantive role in the conclusion of the transaction. Hifiverse satisfies these criteria through listings, lead routing, search and discovery, dealer storefronts, the Authentication Service, the Price Index, and (from Year 2) the CPO Program.

The "we don't take commission" feature does not, by itself, exclude us from scope. We have taken the conservative position and operate full DAC7 compliance.

4. Which sellers are in scope

A seller is reportable in a calendar year if:

the seller used Hifiverse to conclude a relevant activity (sale of goods — rental of accommodation, transport or personal services are not within Hifiverse's scope)
the seller is resident in one or more EU Member States (or, separately, in a participating OECD jurisdiction)
the seller crossed at least one of the following thresholds in the year:
- 30 or more relevant sales through Hifiverse, or
- €2,000 (or local equivalent) of total consideration received through Hifiverse

"Consideration" is the total amount received by the seller, gross of any costs the seller absorbs, and gross of any commission (which in Hifiverse's case is zero).

Excluded sellers (rare in our context): governmental entities; listed companies and their related entities; sellers below the threshold (the most common exclusion in practice).

5. The information we collect from reportable sellers

For individual sellers (natural persons):

First name and last name as it appears on official identity documents.
Primary residence address (principal residence, not a forwarding address).
Date of birth.
Tax Identification Number (TIN) issued by the seller's country of residence, with country code.
VAT identification number where the seller has one.
Financial account identifier (IBAN where applicable, or the locally-recognised account identifier).

For business sellers (legal entities):

Legal name of the entity.
Registered office address.
Company / commercial register number with country of registration.
TIN of the entity.
VAT number where applicable.
Financial account identifier (IBAN or locally-recognised equivalent).
Permanent establishments in any EU Member State.

For both individuals and entities:

Number of relevant activities completed in each calendar quarter.
Total consideration paid or credited in each quarter.
Any fees, commissions or taxes withheld by Hifiverse per quarter — in our case, zero because we charge no commission.

6. The Seller Tax Information Notice — when and how we ask

Annual reminder to all active sellers in January of each year, reminding them of the DAC7 reporting thresholds and the information we may be required to collect and report.

Threshold-triggered Notice. When a seller's activity in a calendar year reaches 25 sales or €1,500 in consideration (a buffer below the reporting threshold), we send a Seller Tax Information Notice to the seller. The Notice:

explains in plain language that the seller is approaching DAC7 reporting thresholds
lists exactly which information we are required to collect, and the legal basis for the collection
provides a secure in-account form for the seller to complete
sets a deadline of 30 days from the date of the Notice
explains the consequences of not providing the information (suspension of new listings; eventually suspension of all listings)
explains the seller's GDPR rights
identifies the recipient (the Bulgarian NRA) and the downstream recipient (the tax authority of the seller's country of residence)

Where the seller fails to respond by the deadline:

We send two reminders at 14 and 7 days before the deadline.
After the deadline: the seller's ability to publish new listings is suspended.
After 14 more days: all of the seller's listings are taken offline until the information is provided.
The account itself is not closed; the seller's collection, wishlist and other features remain accessible.

7. Verifying the information we collect

TIN format — we check that the format matches the standard format of the seller's country of residence, using online TIN-validation services where available.
VAT numbers in EU Member States — validated via the EU VIES service.
Business registration numbers — cross-referenced against national companies registers.
Identity documents (for dealer accounts) — via Stripe Identity or an equivalent KYC vendor.

Where validation fails, we ask the seller to correct the information. Repeated provision of invalid information is treated as non-compliance.

Individual-to-dealer upgrade flow. Where a seller who registered as an individual subsequently opens a dealer account, the dealer KYC information supersedes any DAC7 information previously collected. However, Hifiverse continues to report under DAC7 using the more comprehensive dealer dataset. We do not double-count past activity.

8. The annual report

By 31 January of each year, we file the report for the previous calendar year with NRA. The report contains, for each reportable seller: the seller's identifying information; the per-quarter activity (number of sales, consideration); the financial account identifier; Hifiverse's identification; and the calendar year covered.

The NRA forwards the data to the tax authority of the seller's country of residence under the EU's automated administrative-cooperation framework (typically by 30 April).

We also provide each reportable seller with a copy of the data we have reported about them by 31 January, so the seller knows what their tax authority is receiving.

9. Sellers in the United Kingdom

UK-resident sellers are reportable under HMRC's Reporting Rules for Digital Platforms. The thresholds, data points and reporting cycle are substantially identical to DAC7. The report goes to HMRC, not NRA.

10. Sellers in other OECD jurisdictions

Norway, Iceland, Liechtenstein, Switzerland, Canada and Australia (among others) have adopted equivalent rules. We collect the same data and report to the relevant tax authority under the local transposition.

11. Data protection, retention and seller rights

Legal basis: Legal obligation (GDPR Article 6(1)(c)).

Data is retained for 5 years after the end of each reportable period, as required by DAC7.
Data is disclosed only to NRA and to processors required for the operation of the data collection.
Data is not used for marketing and not sold or rented.
Sellers have standard GDPR rights: access, correction, restriction and (after the legal retention period expires) deletion. Sellers cannot exercise the right to deletion during the legal retention period.
Sellers can request a copy of what we have reported about them via a data-subject access request at info@hifiverse.io.
Where the seller disputes data we have collected or reported, we investigate, correct any errors and notify NRA of the correction.

12. The interaction with DSA Article 30 (trader traceability)

Many data points collected for DAC7 overlap with those required by DSA Article 30 (trader traceability). We collect each data point once and use it for both purposes within the boundaries of GDPR purpose limitation. The longer retention period controls: DAC7 requires 5 years; DSA Article 30(5) requires a minimum 6 months.

13. The interaction with VAT

DAC7 is about reporting seller activity to tax authorities; it does not change the underlying tax obligations. Sellers are responsible for their own income tax and VAT. Hifiverse charges VAT on its own services using Stripe Tax; this is separate from DAC7 reporting.

Note on IOSS / Article 14a VAT Directive "deemed-supplier" rule. Hifiverse is currently reviewing its IOSS / Article 14a exposure with tax counsel. Until that review is complete, we ask non-EU sellers offering low-value goods (below €150) to EU consumers to assume responsibility for their own import VAT and customs declarations. We will update this Policy and the Marketplace Listing Terms when the review is complete.

14. What this Policy is not

This Policy is not tax advice. Sellers are responsible for their own tax obligations. We strongly recommend that frequent sellers consult an accountant or tax adviser in their country of residence.

This Policy is not enforcement of tax law against sellers. Where a seller is reported to a tax authority and the tax authority pursues an unpaid tax liability, the matter is between the tax authority and the seller. Hifiverse is not the enforcement agent and does not deduct any tax from sale proceeds.

15. Errors, corrections and good faith

Where we discover an error in a report after filing, we issue a correction to NRA in the next available filing window and notify the seller. If a seller identifies an error in the data we are about to report, we update the data and use the corrected version.

Sellers who deliberately provide false information (false TIN, false residence to avoid reporting) may have their accounts suspended or terminated, and we may report serious cases of deliberate misrepresentation to authorities.

Email: info@hifiverse.io (subject: "Tax / DAC7", "Privacy", "Marketplace")
Postal: Timelapse Games EOOD, Bulgaria