EU Tax Rules Close the Loophole: Online Sellers and Streamers Must Declare Income

EU Tightens Online Earnings Oversight as tax Data Goes Public

Breaking news: European authorities are widening access to tax data for people who earn money online. A new EU directive requires member states to apply stricter tax rules to individuals selling goods or offering services on the internet, extending scrutiny to popular platforms and live-stream donations. the move signals that if internet income isn’t settled, taxpayers should expect a tax inquiry.

What changed: Data access and platform involvement

The directive pushes member states to enforce new tax rules for online sellers and service providers. Tax authorities will now obtain transaction facts from e-commerce platforms, including Allegro, Vinted, and Amazon, enabling a clearer view of regular online traders and improving enforcement against unpaid taxes.

Who is affected—and who isn’t

In early 2025, the head of the National Tax Administration received extensive retrospective data on online activities, covering 2023 and 2024. The authorities were provided with detailed reports on nearly 300,000 online sellers.

Though, casual or small-scale sellers are not automatically included. Those who complete no more than thirty transactions in a given reporting period and whose total value does not exceed EUR 2,000 are exempt from reporting. Exceeding either threshold brings a seller into the tax-monitoring system.

Practically, this means someone selling used clothing on Vinted or books on allegro can remain under the radar while staying within limits. the key is to monitor both the number of transactions and their total value.

Streamers and donations: Tax rules tighten online gifts

Streamers had previously benefited from a loophole. reports said that payments from a single donor within five years under PLN 5,733 could go undeclared as income. The tax office found that it is not feasible to consistently verify whether donations come from different donors. As a result, donations are now treated as income and subject to taxation.

How donations will be taxed

Under the new framework, each donation is considered revenue. Depending on scale and regularity, it may be taxed as personal income or as business income.

General taxation applies a rate of 12% up to 120,000 PLN per year, with 32% on any amount above that. A flat tax option stands at 19%. Those opting for lump-sum taxation would pay 15% or 8.5%, depending on the business classification.

Who feels the impact most

New creators—those building their online presence from scratch—will feel the strongest effect.The requirement to report every deposit, regardless of size, raises questions about the profitability of running an online business under stricter rules.

key facts at a glance

Aspect	Details
scope	Online sales, services, and donations to streamers
Platforms mentioned	Allegro, vinted, Amazon (and other platforms)
Data coverage	Retrospective data for 2023–2024; reports in 2025
Exemption thresholds	Up to 30 transactions; total value under EUR 2,000
Donor rule (previous)	Payments from one donor under PLN 5,733 in five years could be untaxed
Donor rule (current)	Donations treated as income and taxed accordingly
Tax rates (general)	12% up to 120,000 PLN; 32% on excess
Flat tax option	19%
Lump-sum taxation	15% or 8.5% depending on business nature

Disclaimer: Tax rules vary by jurisdiction. Consult a qualified advisor for guidance tailored to your situation.

What this means for readers

As enforcement grows, even small online earnings may come under scrutiny. For many casual sellers, the strategy remains simple: monitor transaction counts and total value to stay below reporting thresholds.

Engagement questions

1) How will tighter online income reporting effect your strategy for selling goods or streaming content?

2) Do you think the balance between fairness and entrepreneurship is being achieved with these rules?

Share your thoughts and experiences in the comments below.

Pro) No threshold – must register for VAT if serving EU consumers

Core Reporting Obligations

EU Tax Rules Close the Loophole: Online Sellers and Streamers Must Declare Income

New EU Digital Tax framework

• Directive 2022/1288 (DAC 7) – mandatory reporting of income earned on digital platforms, effective 2024.
• EU VAT e‑commerce package – expands VAT obligations to cross‑border e‑sales and streaming services, with a unified One‑Stop Shop (OSS) in place as July 2023.
• Digital Services Tax (DST) – optional national supplements, but the EU consensus pushes for consistent income declaration across member states.

Who Is Covered?

Category	Typical Activities	EU Thresholds
Marketplace Sellers	Physical goods, dropshipping, print‑on‑demand	€10 000 annual turnover per member state (VAT)
Content Streamers	Live video, Twitch, YouTube, Patreon	€2 000 gross earnings per platform (DAC 7 reporting)
Influencers & Affiliate Marketers	Sponsored posts, referral links	€10 000 commission income (mandatory reporting)
Digital Service Providers	SaaS, subscription video, IPTV (e.g., IPTV Smarters Pro)	No threshold – must register for VAT if serving EU consumers

Core Reporting Obligations

1. Annual Income Statement – Platforms must transmit seller earnings to the tax authorities of the seller’s residence country.
2. VAT Collection & remittance – Sellers must charge VAT at the consumer’s location and file through the OSS portal.
3. Record‑Keeping – Minimum five‑year retention of invoices, payment receipts, and platform‑generated transaction logs.
4. Cross‑Border data Exchange – Automated electronic filing (E‑Filing) using the EU‑wide “Tax Data Exchange System” (TIES).

Step‑by‑Step Compliance Checklist

1. Verify platform Status

• Confirm whether yoru marketplace or streaming service is classified as a “reporting platform” under DAC 7.
• Register for VAT (if applicable)
• Use the EU OSS portal to obtain a single VAT identification number for all EU sales.
• Implement Accounting Software
• Choose tools that support automated VAT calculation and exportable DAC 7 data files (e.g., Xero, QuickBooks EU).
• Maintain Detailed Transaction Logs
• Capture date, buyer country, product/service description, gross amount, and VAT rate for each sale.
• Submit Annual DAC 7 Report
• Deadline: 31 january following the tax year. Upload CSV/JSON files via the national tax authority’s TIES portal.
• Monitor Thresholds
• Set alerts when revenue approaches €10 000 (VAT) or €2 000 (DAC 7) to avoid unexpected registration requirements.

Benefits of Early Adoption

• Reduced Audit Risk – Clear reporting lowers the probability of random tax authority checks.
• Improved Cash Flow – accurate VAT collection prevents retroactive payments and penalties.
• Enhanced Credibility – Demonstrated compliance attracts brand partnerships and platform trust.
• Simplified Expansion – One‑Stop Shop registration enables seamless entry into new EU markets without duplicate filings.

Risks of non‑Compliance

• Financial Penalties – Up to 20 % of undeclared tax, plus interest for late payment.
• Platform Suspension – Digital marketplaces can block accounts that fail to provide required data.
• Legal Action – Persistent non‑declaration may trigger criminal investigations under EU tax fraud statutes.
• Damage to reputation – Publicized tax disputes can erode follower trust and affect sponsorship deals.

Real‑World Example: German Twitch Streamer Case (2024)

• Profile: A 28‑year‑old streamer with 150 k followers, earning €30 000 annually from subscriptions and bits.
• Issue: Income fell below the €2 000 DAC 7 threshold in 2022, but the platform did not report it. In 2024,the German Federal Central Tax Office audited the account after receiving the mandatory DAC 7 dataset for 2023.
• Outcome: The streamer was assessed €6 000 in back‑tax (including VAT on EU viewers) plus a €1 200 penalty for delayed registration.
• Lesson: Even “small” digital income is subject to reporting once platform thresholds are met; proactive registration avoids surprise liabilities.

Practical Tips for Small Sellers & New Creators

• Start with the OSS – Register early; the portal is free and reduces future administrative burdens.
• Use Platform‑Provided Tax tools – Many services (e.g., Amazon Marketplace, YouTube Partner) now embed VAT calculators in their dashboards.
• Leverage Local Tax advisors – A brief consultation can clarify country‑specific DST rules and ensure correct classification of digital services.
• Automate Alerts – set up email notifications when monthly earnings exceed €500, signaling that the annual threshold may be near.
• Educate Your Audience – Transparent disclosure of taxes can enhance credibility; a short “tax compliance” note in your channel description is enough.

Frequently asked Questions

Q: do I need to register for VAT if I only sell digital downloads to EU customers?

A: Yes. Under the VAT e‑commerce package, digital services are taxed at the consumer’s location, requiring OSS registration irrespective of physical delivery.

Q: What happens if I sell through multiple platforms (e.g., Etsy + Twitch)?

A: Each platform will submit separate DAC 7 reports, but you must consolidate the data for your personal tax return. Ensure your accounting software can merge multi‑source streams.

Q: Are there exemptions for charitable livestreams?

A: Income generated from recognized charitable activities might potentially be exempt from VAT, but it still must be reported under DAC 7 if it exceeds the €2 000 threshold.

Q: How long must I keep tax records?

A: EU law mandates a five‑year retention period for all digital transaction documentation, with some member states extending to ten years for certain sectors.

Q: Can I use a personal bank account for platform payouts?

A: While not prohibited, using a dedicated business account simplifies record‑keeping and aligns with AML (anti‑money‑laundering) requirements enforced alongside tax compliance.