DAC7 Is Going Global – Is Your Platform Ready for 2027?

Luxembourg is preparing to take DAC7 beyond EU borders.

On 17 July 2026, the Luxembourg Government submitted a draft law that would extend the existing DAC7 reporting framework to certain non-EU jurisdictions participating in the OECD’s international information-exchange framework for digital platforms.

DAC7 is an EU tax transparency framework requiring digital platforms to collect, verify and report information on sellers and their income to tax authorities. Its purpose is to improve tax transparency and ensure that income earned through digital platforms is properly reported and taxed.

What’s Changing?

From 1 January 2027, Platform Operators may need to apply DAC7-style due diligence and reporting requirements to sellers resident in participating non-EU jurisdictions.

The exact reporting scope would depend on the jurisdiction:

• Some countries would follow the full DAC7-equivalent scope, covering all four categories of relevant activities.

• Others would apply the narrower OECD core framework, focused mainly on property rentals and personal services.

The draft law also introduces new rules for delegating reporting obligations between Platform Operators established in participating jurisdictions.

Why Does It Matter?

The proposed changes could expand the population of reportable sellers and require Platform Operators to revisit their:

• Seller onboarding processes;

• Due diligence procedures;

• Data collection systems; and

• Reporting processes.

For affected operators, preparation ahead of 2027 may therefore require both procedural and operational adjustments.

The draft law is still progressing through the Luxembourg legislative process and may evolve before adoption.

L&N will continue to follow developments as the new framework takes shape.