DAC7: What the Tax Agency Does with Received Data and How It Uses It in Inspections. What Do They Review and How to Defend Yourself?

IMPORTANT: This article was drafted in accordance with the European and Spanish regulatory framework in effect at the time of its publication, specifically Directive (EU) 2021/514 —DAC7—, Law 58/2003, the General Tax Law, and its implementation in Spain through Royal Decree 117/2024, dated January 30. Since the criteria for data cross-checking, taxpayer selection, audits, inspections, and tax adjustments by the Tax Agency may be updated or vary depending on administrative practice, each specific case must be reviewed in accordance with current regulations, the information reported, and the data actually provided by digital platforms.

The data that digital platforms communicate to the Tax Agency under DAC7 regulations are not simply filed away. Quite the opposite: they are integrated into automatic analysis systems, cross-referenced with pre-existing tax information, and feed into the procedures for selecting taxpayers for inspections and verifications.

This article explains what the Tax Agency does exactly with this information and how it translates into real actions against taxpayers operating through digital platforms.

What does the Tax Agency do with DAC7 data once it receives it?

When the Tax Agency receives the information reported by digital platforms under the DAC7 Directive, this data does not remain static. It is immediately incorporated into the tax administration’s IT systems, where it serves two main functions:

➔ Integration into risk analysis systems

DAC7 data is integrated into advanced analysis tools that allow the Tax Agency to detect patterns, anomalies, and tax risk profiles. These systems process information massively and automatically classify taxpayers according to different risk criteria.

➔ Massive source of tax information (tax big data)

The information reported under DAC7 adds to the ecosystem of data that the Tax Agency already possesses: personal income tax (IRPF) declarations, corporate income tax, VAT, informative models, bank data, and census records. This accumulation of sources generates a complete tax portrait of each taxpayer, difficult to conceal or fragment.

Automatic cross-checks performed by the Treasury using DAC7 data

Once the data is incorporated, the Tax Agency performs automatic cross-checks to detect inconsistencies between what the taxpayer declared and what was reported by the platforms. These cross-checks are performed with:

◆ IRPF (Personal Income Tax)

The Tax Agency contrasts the income reported by platforms with the income declared by individuals in their annual declaration. If a platform reports €30,000 in gross income and the taxpayer has only declared €15,000, the discrepancy is recorded.

◆ Corporate Income Tax

In the case of companies operating through platforms, reported business figures are cross-referenced with Corporate Income Tax declarations. Any significant difference triggers risk alerts.

◆ VAT

Transaction data is cross-referenced with quarterly VAT declarations. The Tax Agency can detect VAT-liable operations that have not been declared or situations where the taxpayer should have registered in the business census but did not.

◆ Tax Censuses

Information on economic activity reported by platforms allows the Tax Agency to identify individuals who are carrying out economic activities without being registered in the census of businesses and professionals. This non-compliance has both administrative and sanctioning consequences.

◆ Informative Models (347, 349, 390, etc.)

DAC7 data is cross-referenced with information from informative models that companies and professionals must submit. Model 347 (operations with third parties), Model 349 (intra-community operations), and other records allow the Tax Agency to verify the overall consistency of the declared activity.

Key difference: having data is not inspecting

It is essential to understand that the Tax Agency may have data about your activity without that automatically implying an inspection. Data is stored, cross-referenced, and analyzed, but the decision to initiate an inspection depends on multiple factors: volume of discrepancies, risk profile, available resources, and internal selection criteria.

However, the existence of this data means that the Tax Agency has the technical and legal capacity to act at any time.

Profiles at Higher Risk of Inspection Under DAC7

Although any taxpayer operating through digital platforms may be subject to verification, some profiles present a higher tax risk:

Freelancers and digital professionals

Professionals who provide services through platforms (designers, programmers, consultants, content creators) and who are not correctly declaring their income. It is common to detect cases where only a portion of income is declared or where self-employment registration has not been completed.

Marketplace sellers

Individuals who sell products through Amazon, eBay, Wallapop, or other e-commerce platforms and who are not complying with their tax obligations. The problem is exacerbated when the volume of sales exceeds the thresholds that require registration in the Economic Activities Tax (IAE) or the VAT regime.

Property lessors

Owners who rent tourist accommodation through Airbnb, Booking, or similar platforms without declaring this income or doing so incompletely. This profile has traditionally been a focus for the Tax Agency, and DAC7 reinforces its inspection capacity.

Companies operating through digital platforms

Companies that invoice part of their activity through platforms and are not correctly reflecting this income in their annual accounts or tax declarations. This also includes cases of companies operating without being registered in the corresponding censuses.

Mixed individual / company structures

Situations where there is confusion between personal activity and corporate activity. For example, a professional who invoices part of their services as an individual and another part through a company, without clear consistency between both structures. These cases are especially vulnerable to cross-inspections.

Common discrepancies detected using DAC7

The Tax Agency’s automatic cross-checking systems are designed to identify patterns of inconsistency. The most frequent discrepancies are:

◉ Undeclared income

The platform reports income that does not appear in any of the taxpayer’s tax declarations. This is the most serious assumption and generates the highest risk of regularization with interest and penalties.

◉ Differences between gross and net income

The platform reports gross income (before commissions and expenses), while the taxpayer declares a significantly lower net figure without adequate justification. The Tax Agency may consider that there is a lack of transparency in the declaration of expenses.

◉ Inconsistencies between tax years

Abrupt changes in declared activity from one year to another without reasonable justification. For example, declaring €10,000 in 2022, €40,000 in 2023, and returning to €12,000 in 2024, when the platform reports stable activity around €35,000-€40,000 annually.

◉ Incomplete declarations

The taxpayer declares income from one platform but not from others where they also operate. Automatic cross-checks allow the Tax Agency to identify these omissions.

◉ Platforms reporting differently from what was declared

Cases where the platform reports one figure and the taxpayer declares a different one, without a reasonable explanation (e.g., differences in accrual, non-deductible commissions, or errors in temporal imputation).

◉ Incorrect use of companies

Situations where a taxpayer channels income through a company without a real business structure, with the aim of reducing the tax burden. The Tax Agency may consider this a simulation and reclassify such income as personal income.

Most Common Types of Actions Taken by the Tax Authority

When the Tax Agency detects discrepancies thanks to DAC7 data, it can initiate different types of actions, each with a different scope and consequences:

Information requests

This is the mildest action. The Tax Agency requests the taxpayer to provide documentation or explanations regarding certain operations or detected discrepancies. It does not necessarily imply a regularization but is a sign that there are doubts about the tax situation.

Usual response period: 10 working days, extendable upon justified request.

Limited verifications

A more agile procedure than a formal inspection, focused on specific aspects of the declaration. The Tax Agency can verify one or more specific concepts (e.g., income from digital platforms in a given year) without reviewing the taxpayer’s entire tax situation.

Maximum duration: 18 months, according to the General Tax Law.

Formal inspections

A procedure for exhaustive verification of the taxpayer’s tax situation, which may cover several tax years and multiple taxes. Formal inspections have a broader scope and can lead to complex regularizations with late payment interest and penalties.

Maximum duration: 18 months, with possible extensions in cases of special complexity.

Retroactive regularizations

The Tax Agency can review the last four non-prescribed tax years (in some cases, it may review more years if it detects signs of fraud). Regularizations may include the settlement of the tax debt, late payment interest, and, where applicable, penalties.

Common errors detected by the Tax Authority through DAC7

Beyond quantitative discrepancies, there are fiscal approach errors that the Tax Agency easily identifies thanks to DAC7 information:

1. Lack of fiscal consistency

Declaring economic activity without being registered in the corresponding census, or being registered under a heading that does not reflect the actual activity. This also includes cases where expenses unrelated to the declared activity are claimed.

2. Poor tax planning

Structuring activity in an improvised manner, without professional advice, which generates inconsistencies between the economic reality and the declared tax situation. For example, establishing a company to channel income without a real business activity behind it.

3. Tax Confusion in the Digital Economy

Not correctly understanding the tax obligations applicable to activity carried out through platforms. This includes not knowing whether to declare under IRPF or Corporate Tax, being unaware of VAT obligations, or not correctly applying withholdings.

4. Improvisation in Statements

Submitting declarations without having previously analyzed the information that platforms have reported to the Tax Agency. This generates discrepancies that could have been avoided with an adequate review.

How does IN DIEM help you with DAC7?

The new regulatory framework derived from DAC7 has brought about a radical change in tax control of the digital economy. The information that the AEAT now receives is massive, automated, and cross-border, leaving very little room for improvisation or lack of knowledge.

In this context, IN DIEM supports companies, digital platforms, and professionals in adopting a proactive legal strategy, designed to minimize risks, ensure regulatory compliance, and protect the taxpayer’s position before administrative actions are initiated.

At IN DIEM Abogados, we advise companies, digital platforms, and professionals affected by DAC7, acting from the outset to identify tax risks, ensure regulatory compliance, and protect your position against the Tax Agency.

We can help you with:

• Immediate analysis of your situation regarding DAC7, determining if you are subject to reporting obligations and what your real level of exposure to the AEAT is.
• Review of DAC7 reports made since 2023, detecting errors, omissions, or inconsistencies that may lead to verification or penalty procedures.
• Evaluation of tax obligations from previous years, quantifying risks and assessing voluntary regularizations before inspection actions.
• Implementation and review of DAC7 tax compliance systems, especially for digital platforms, including due diligence protocols, identity verification, and annual reporting procedures.
• Legal defense in tax verification and inspection procedures initiated based on DAC7 information, with the design of specific defensive strategies and protection of your rights as a taxpayer.
• Tax planning compatible with DAC7, reviewing business structures, invoicing models, and income flows to operate with legal certainty and tax efficiency.

We have specific experience in digital taxation, online platforms, and complex tax procedures, which allows us to act with legal judgment, practical knowledge of the AEAT’s operations, and a strategic vision oriented towards prevention.

If your company, platform, or professional activity may be affected by DAC7, it is essential to analyze the situation as soon as possible.
Early action allows for reducing risks, avoiding unnecessary penalties, and facing the new environment of tax transparency with legal certainty.

That’s where IN DIEM makes the difference.

Contact us. We are here to help you.

We accompany you through each phase of the process.

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