DAC7 and App Store Compliance: What App Owners Need to Know

If you own an app on the App Store, you may have recently received an email from Apple asking you to verify your business details. Here is what these requests are about and what you need to do.

What is DAC7?

DAC7 stands for the Directive on Administrative Cooperation – 7th Amendment. It is an EU tax transparency law that came into effect in 2023. It does not introduce new taxes. What it does is require digital platforms — including Apple — to report information about the sellers and developers operating on their platforms to EU tax authorities.

In short, Apple and Google need to verify who you are and link your business identity to the revenue processed through their platforms. This applies to any developer or company distributing apps to EU customers.

Why are you receiving these emails?

As a business operating on the App Store, Apple classifies you as a "seller" on their platform. Even if you process payments through an external gateway like Stripe, Apple is still considered the platform facilitating the transaction. They are required to verify your legal entity, your VAT number and TIN, to confirm that you are a legitimate, tax-registered business.

This is a one-time verification process. It is not a request for payment, nor does it change how you are taxed locally.

Steps on App Store Connect

• Log in to App Store Connect.
• Navigate to Business > Compliance Information > DAC7.
• Enter your VAT number and your company TIN, as registered with the Commissioner for Revenue.
• Under reporting categories, confirm whether your app facilitates the sale of goods (this includes takeaway food or physical products ordered via the app) and whether it involves personal services (such as a human-delivered service like a tour or consultation). Digital content sold via Apple In-App Purchases is handled separately through Apple's standard IAP reporting.
• Submit and save your compliance information.

If your app uses an external payment provider for physical goods, Apple will report you as a seller but with blank or zero revenue on their side — because they do not process those transactions. This is expected and correct.

Summary

These are compliance steps, not new tax obligations. The key actions are straightforward: submit your VAT and TIN details to Apple via App Store Connect.

If you have received one of these emails and are unsure how to proceed, feel free to get in touch and we can guide you through the process.