DAC7 and Tax Obligations for Helpers

As a ReciGo helper, it's essential to understand your tax obligations. This guide explains what DAC7 is, when you need to register as self-employed, and how to declare your income correctly.

What is DAC7?

DAC7 Definition

DAC7 (Directive 2021/514/EU) is a European regulation for mandatory tax reporting by digital platforms like ReciGo.

Requires ReciGo to:

Collect tax information from helpers
Report income to tax authorities
Send annual report if you exceed certain thresholds

Effective date: January 1, 2023 (already active)

Why Does DAC7 Exist?

European Union objectives:

🎯 Combat tax evasion in the digital economy
🎯 Ensure platform workers declare income
🎯 Create equality (vs. traditional workers who always declare)
🎯 Fund public services (healthcare, education, etc.)

It's not a conspiracy: It's part of the European legal framework, like VAT or income tax.

ReciGo is LEGALLY REQUIRED to report your income

It's not optional. If ReciGo doesn't report, the platform is fined and can be shut down. That's why we collect your tax ID, address, and other fiscal data.

Your data is protected: Only shared with tax authorities, never with third-party commercial entities.

DAC7 Reporting Thresholds

When Does ReciGo Report Your Income?

ReciGo reports to tax authorities if you meet ONE OR BOTH of these criteria in a calendar year:

Threshold A: 30 or more completed jobs

Counts all paid jobs in the year
From January 1 to December 31

Threshold B: €2,000 or more in gross income

Sum of ALL job prices (before ReciGo commission)
Includes tips
Complete calendar year

Reporting Examples

Case 1: Not reported

Jobs completed: 25
Gross income: €1,800
✅ NOT reported (below both thresholds)

Case 2: Reported due to jobs

Jobs completed: 35
Gross income: €1,500
⚠️ YES reported (exceeded 30 jobs)

Case 3: Reported due to income

Jobs completed: 20
Gross income: €2,500
⚠️ YES reported (exceeded €2,000)

Case 4: Reported for both

Jobs completed: 50
Gross income: €3,800
⚠️ YES reported (exceed both thresholds)

What Information Does ReciGo Report?

Personal data:

Full name
Tax ID
Tax address
Date of birth
Country of tax residence

Income data:

Number of completed jobs
Gross income (before ReciGo commission)
Tips received
Fees/commissions deducted
Taxes withheld (if applicable, currently €0)

Bank data:

IBAN (only last 4 digits)
Bank account country

ReciGo reports GROSS income, not net

Example:

Job price: €50
ReciGo commission: -€7.50
You receive: €42.50

ReciGo reports to tax authority: €50 (gross)

You declare in tax return:

Option A: €50 (gross) and deduct €7.50 as expense
Option B: €42.50 (net)

Consult a tax advisor for which option is better for your case.

Do I Need to Register as Self-Employed?

Criteria for Registering

You DON'T need to be self-employed if:

✅ Sporadic or occasional activity (<30 jobs/year)
✅ Income <€2,000/year
✅ It's not your habitual or main activity
✅ You work very occasionally (1-2 times per month max)

You DO need to be self-employed if:

⚠️ Habitual or regular activity (several jobs per week)
⚠️ Income >€2,000/year
⚠️ It's your main or secondary income source
⚠️ You offer services continuously

Legal Definition of "Habitual Activity"

According to tax authorities:

Regularity over time
Minimum organization (you have specific vehicle, tools, etc.)
Intention of continued profit

Clear examples:

NOT habitual activity:

Student who does 2-3 jobs per month for extra money
Person with fixed job who does occasional weekend work (<30/year)
Retiree who does sporadic jobs

IS habitual activity:

You do 3-4 jobs per week (50+ per year)
It's your main income source
You actively promote yourself as "professional helper"
You bought a van specifically for this

Gray area: Between 30-50 jobs/year

If you do 30-50 jobs/year (€2,000-€3,500), you're in the gray zone:

Tax authority MAY consider it habitual activity
Or may consider it sporadic if irregular (e.g., only 3 intense months)

Recommendation: Consult tax advisor BEFORE exceeding 30 jobs. Avoid surprises.

What If I DON'T Register and Should Have?

Risks of not registering:

🚨 Tax fine: €1,000-€10,000 (depending on severity)
🚨 Social Security fine: Retroactive regularization + interest (can be €5,000+)
🚨 Loss of deductions: Can't deduct expenses if not registered

Probability of being detected:

🟢 Low if you earn <€2,000/year
🟡 Medium if you earn €2,000-€5,000/year (tax authority may review)
🔴 High if you earn >€5,000/year (data cross-checks, ReciGo reports)

Tax inspections:

Cross-check DAC7 data with tax returns
If ReciGo reported €6,000 but you declared €0 → automatic inspection
Tax authority has 4 years to review declarations

It's not worth the risk

If you're in the "should register" zone, do it. Fines are much more expensive than self-employment fees.

Consult a tax advisor: First consultation is usually free. They'll tell you exactly what to do for your situation.

Declaring Income on Tax Return

Should I Declare Even If Not Self-Employed?

YES, all income is taxable, whether self-employed or not.

Declare on:

Annual income tax return
Deadline: April-June of following year
Mandatory if total income > €1,000/year from work (or > €14,000 from all sources)

How to Declare If NOT Self-Employed

Income from occasional economic activities:

Appropriate section of tax return (Economic activity income)
Simplified direct estimation regime
Declare:
- Gross income from ReciGo (what ReciGo reports)
- Subtract proportional expenses (if you can justify)

Example:

Gross income ReciGo:      €1,800
Deductible expenses:
  - Gas:                   -€150
  - Maintenance:            -€50
────────────────────────────────
Net income:               €1,600
Tax base:                 €1,600

How to Declare If Self-Employed

Income from habitual economic activities:

Quarterly:

Quarterly installment payment
Estimate quarterly income and expenses
Pay income tax advance (20% of estimated profit)

Annual:

Income tax return - April-June
Final adjustment (refund excess or pay difference)

Deductible as self-employed:

✅ ReciGo commission (100%)
✅ Gas and vehicle maintenance (100% if exclusive use, 50% if mixed)
✅ Vehicle insurance (increase for commercial use)
✅ Vehicle depreciation (if bought for work)
✅ Mobile phone (% professional use)
✅ Self-employment fees (deductible on tax return)
✅ Accountant (if you hire tax advisor)

Realistic example:

Gross income ReciGo:          €8,000
Deductible expenses:
  - ReciGo commission:       -€1,200
  - Gas:                       -€800
  - Maintenance:               -€300
  - Insurance (increase):      -€200
  - Self-employment fees:    -€1,440
  - Accountant:                -€300
─────────────────────────────────────
Net income:                   €3,760
Tax base:                     €3,760
Tax (varies by country):        ~€700

Information You Should Keep

Mandatory Documents

For all helpers:

✅ ReciGo payment history (export CSV annually)
✅ Stripe receipts (payout emails)
✅ ReciGo annual summary (sent in January)

Additional for self-employed:

✅ Gas invoices (keep receipts)
✅ Maintenance/repair invoices
✅ Vehicle insurance policy
✅ Self-employment fee receipts
✅ Vehicle purchase invoice (if applicable)

How Long to Keep

Legal minimum: 4 years (tax prescription period)

Recommended: 6 years (just in case)

Format:

Digital: Scanned PDFs, cloud backups
Physical: Folder per year

ReciGo sends you annual summary automatically

In January of each year, ReciGo sends by email:

Summary of completed jobs (quantity)
Total gross income
Total commissions paid
Downloadable CSV file

Save this email - it's your main proof for tax authorities.

Frequently Asked Questions

Last updated: January 31, 2026

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