Tax reporting for marketplaces with millions of payees.
Gig, creator, and commerce marketplaces pay sellers and creators in every country they reach. Taxbit collects W-8 and W-9 when a payee signs up, then files 1099-K, 1099-NEC, and DAC7 seller reports from one source.
The stakes
At a million payees, reporting is the product risk.
1099-K and 1099-NEC for every payee
Millions of sellers, creators, and gig workers, each a payee with a threshold and a form. The reporting that's routine at a thousand payees becomes a liability on every record at a million.
W-8 and W-9 from every payee
Every payee needs a tax status on file before they get paid. Collecting and validating W-8s and W-9s as accounts open is the foundation everything else stands on.
Payouts cross every border
Payees sit in every country you reach. Each payout carries a tax obligation that differs by jurisdiction, and the deadlines don't line up.
Many payee types, one system
Sellers, creators, drivers, and players each come with different relationships and forms. One system has to report them all from the same data.
The difference
Every payee, every form, from one source.
The old way
- A reporting process that creaks at a thousand payees and breaks at a million
- W-8 and W-9 chased down by hand, payee by payee
- A separate workflow for domestic forms and cross-border payouts
- Year-end reconciliation across payment systems that don't agree
With Taxbit
- 1099-K, 1099-NEC, and 1099-MISC generated for every payee from one source
- W-8, W-9, and self-certifications collected and validated at onboarding, automatically
- Which sellers are reportable worked out per jurisdiction, with incomplete records flagged before anything is filed
- Domestic and cross-border reporting from the same payee data
- DAC7, SERR, 1099-K, and more filed in each authority's format, with each seller's copy delivered, from the same seller data
Pay anywhere, report where you owe
Cross-border payouts and tax, from the same data.
With Airwallex, marketplaces onboard a seller once and pay them in their own currency, anywhere. That payment data flows into Taxbit, mapped to each jurisdiction's requirements, so the obligation is met the moment the payout settles. Airwallex moves the money. Taxbit is the compliance layer over it.
01
Global onboarding
Airwallex KYC/KYB and Taxbit W-8/W-9, collected once.
02
Localized payments
Pay-ins from 60+ countries, pay-outs to 200+, with local rails and FX.
03
Tax data capture
Payment data flows into Taxbit, normalized per jurisdiction.
04
Automated reporting
1099s, 1042-S, CRS 2.0, DAC8, and country-specific forms.
AI you can put in front of a regulator
Rules written into the system make the call on every account, and your team can read them. Every action the AI proposes is reviewed by a person before it runs.
A full audit trail
Every gain and loss traces back to the transactions behind it.
Your data stays yours
Taxbit does not train AI models on your data, and nothing is sent to third-party AI vendors.
SOC 2 and enterprise controls
The security documentation your team asks for before a deal closes, ready for review.
Marketplace reporting, answered.
How should marketplace operators approach EU DAC7 seller data collection during onboarding?
Collect and validate at onboarding, not at reporting time. DAC7 requires the platform to collect and validate seller information before income is reported, so the practical move is to make it part of account opening. Taxbit collects the documentation through an SDK embedded in your own product, validates the identifiers it collects, with US TINs matched against the IRS in real time and foreign tax IDs and VAT numbers validated by format, and tracks each seller's status so a gap surfaces while it is still cheap to fix.
What are the key DAC7 reporting requirements for gig economy platforms and online marketplaces?
Platforms facilitating the sale of goods, personal services, rental of immovable property, or transport must collect and validate seller identity, then report seller income per reportable period to one EU tax authority, which exchanges it with the others. The data has to reconcile to what you actually paid sellers. Taxbit works out who is reportable from your own payment and transaction data rather than asking you to assemble the list.
How does DAC7 apply to digital platform seller reporting for cross-border transactions?
A seller resident in one member state transacting through a platform established in another is exactly the case DAC7 was built for: report once, exchange EU-wide. The reporting duty sits with the platform, not the seller. Taxbit works out which jurisdiction each seller is reportable in and generates the filing in that authority's required format.
How does DAC7 compliance impact digital platform seller reporting for marketplaces operating in the EU?
It moves an obligation onto the platform that used to sit with the seller, and it lands alongside 1099-K in the US and SERR-style seller reporting elsewhere. Treating those as one dataset rather than three separate builds is the difference between running one reporting process and running three. Taxbit runs DAC7, SERR, and 1099-K from the same source data.
Onboard and report on payees at scale.
From payee signup to filing-ready forms, end to end in one system.