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Tax reporting reminder: the 1099-K, HMRC and DAC7 thresholds for platform sellers
In the US, platforms need to file a 1099-K only above $20,000 and 200 transactions. In the UK and EU, reporting applies from 30 sales or €2,000 a year. Here are the official thresholds.
What changed
Selling on marketplaces now comes with tax reporting built in, and the thresholds differ by region. This is a reminder of what the official pages say. It is not tax advice, and a threshold for reporting is not a threshold for owing tax.
United States. The IRS says updated FAQs came out in Fact Sheet 2025-08 on 23 October 2025. It explains that the One, Big, Beautiful Bill retroactively reinstated the reporting threshold that applied before the American Rescue Plan Act of 2021. As a result, third-party settlement organisations, such as payment apps and online marketplaces, do not need to file a Form 1099-K unless the gross reportable payments to a seller exceed $20,000 and the number of transactions exceeds 200. The IRS also notes that a 1099-K is an information return: receiving one, or not receiving one, does not by itself settle whether income is taxable.
United Kingdom. GOV.UK says rules for digital platforms started on 1 January 2024. Platforms collect seller details and report to HMRC, by 31 January of the following year. Your details will not be reported if you make fewer than 30 sales of goods in a calendar year and receive less than €2,000 (about £1,700) for them. The page was last updated on 22 September 2025.
European Union. Germany's federal tax office explains the same DAC7 system. It says the platform is required to report on a seller who carried out more than 30 transactions or received more than €2,000 in a year, and that the platform sends the seller an overview of the previous year's quarterly transaction data. If you see inaccuracies, you must tell the platform. The authority adds that you will not automatically get a higher tax assessment from the report; your local tax authority considers the information at its own discretion.
The three systems are not the same. The US threshold is much higher and is judged on both value and number of transactions. The UK and EU thresholds are far lower, and they report on the seller's account, regardless of whether the activity is a hobby or a business.
We have not checked each platform's own reporting notices; they may collect tax details from you earlier or ask for different information.
Who it affects
Anyone who sells regularly on a marketplace is affected, because platforms collect tax details and may report. UK and EU sellers get reported much sooner than US sellers, so even moderate selling can trigger a report there.
What to do
- Count your own sales and totals per calendar year, per platform, so a report never surprises you.
- Check the overview your platform sends and correct any mistake with them in writing.
- Keep records of what you paid for items and your costs; a report shows receipts, not your costs.
- Ask a qualified tax adviser what you owe in your country. Reporting thresholds do not tell you that.
Sources
- IRS: Form 1099-K FAQs, general information (published 23 October 2025)
- IRS: Understanding your Form 1099-K (page read 4 October 2026)
- GOV.UK (HMRC): Selling goods or services on a digital platform (published 22 September 2025)
- BZSt (Germany): DAC7 platform reporting FAQ (page read 4 October 2026)