DAC7 for Uber, Glovo, Wolt & others. Time to be afraid?

Watch the interview with TAX advisor about DAC 7 or read more about it to get ready for incoming changes!

Work with Glovo, Uber, Bolt, Wolt, Free Now - crucial changes from 1st of May 2023

DAC7 directive has provoked a lot of questions among gig workers recently. Coming in on May 1st 2023 in Poland, it will affect every driver and courier working with gig platforms. Let us explain why.

❗UPDATE 11.05.2023❗
We've studied cases from Sweden 🇸🇪 & Denmark 🇩🇰, where 1000s of Uber drivers were charged with unpaid taxes a few years back. DAC7 will make it easy for tax authorities in other EU countries to issue similar investigations. Read more ➡️ HERE.

European DAC7 directive - what is this about?

The DAC7 directive is a set of laws imposed by the European Union, aimed to reduce tax evasion on digital platforms (internet & mobile) - including Uber, Glovo, Bolt, and other gig apps used by drivers and couriers to earn money.

Such platforms will now have to report the identities & earnings of their drivers and couriers directly to tax offices. And that is for the whole 2023.

What does this mean for you?

Working in Glovo, Uber, Bolt, Wolt, Free Now? Tax offices will get your identity and earnings!

It means that your tax office will soon have full visibility over the amounts you’re making on gig platforms. Up until now, it wasn’t possible.

For drivers and couriers, this is a major change that will affect them in the near future, as paying taxes properly will become an actual thing.

Up until now, it was basically a gray area due to lack of means to control the gig work market. DAC7 provides such tools, and tax authorities will be very happy to use them.

Because of that, choosing a reliable partner will become more important than ever. And that’s where Appjobs Work comes in.

Download Appjobs Work app

Don't risk it - work with Appjobs Work on Uber, Bolt, Glovo, Wolt, Free Now and enjoy peace of mind!
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Rental agreements, payouts without VAT? Tax office will notice. 5 tax avoidance examples

In Poland, taking advantage of the gig work being a gray area has become a standard over the last years. Here are 5 examples of common practices that are in fact tax evasion:
  • Rental agreements for arbitrary amounts

    Imagine that an owner of a hair salon hires a hairdresser who has a pair of scissors.
    The owner pays her 10% salary based on the work contract and the other 90% based on the rental agreement for those scissors.

    Sounds ridiculous, doesn’t it?It’s exactly the same in case of rental agreements when working as driver or courier. Would you pay your employee 5000 PLN for renting a bike worth 300 PLN? Perhaps - if you’d like to evade taxes!

    ➡️ Appjobs Work offers market-rate rental agreements to avoid tax evasion risk for our partners.
  • Paying workers the full amount visible in apps

    Work apps display pre-tax revenue, not salary. As a driver or courier, you’re providing services to people who order, and as a service provider YOU are obliged to pay taxes:
    - VAT (value added tax)
    - ZUS (social insurance)
    - PIT (personal income tax)

    Not paying either of these taxes puts YOU in danger, as YOU are the service provider - your partner is just doing that in your name.

    ➡️ Appjobs Work properly declares all these taxes with great care, so that you don’t have to care.
  • Not deducting VAT from earnings

    While you may pay lower ZUS or PIT based on your student status or other income sources, there are no exceptions from VAT - it has to be paid in full.

    However, new companies in Poland are exempt from VAT up until reaching 200 000 PLN revenue. There are partners who register a fresh company after reaching that threshold and transferring workers there to evade paying VAT. This is an obvious VAT crime, punishable up to 25 years imprisonment in Poland.

    ➡️ Appjobs Work does not take advantage of this loophole and never will.
  • Paying out earnings as unregistered activity

    In Poland, one does not need to pay taxes while earning monthly below 50% of minimum wage (less than 1745 PLN until 1.07.2023, afterwards 1800 PLN), but that is true for trade & art.

    Drivers and couriers provide services, for which this is impossible and won’t be accepted by tax offices.

    ➡️ Appjobs Work does not allow this setup at all.
  • Establishing shareholder company and paying salaries as dividend

    The idea is to establish a company and treat drivers and couriers as particle owners of that company instead of employees. The salary would then be paid as a dividend, which is not taxed with ZUS (social insurance).

    Such setup is commonly used by large companies listed on stock exchanges, but it’s an obvious tax evasion effort that is very easy to prove by tax authorities.

    ➡️ Appjobs Work does not allow such setup at all.

    ❗UPDATE 14.02.2023❗
    According to ZUS (social insurance state agency in Poland), performing services as a shareholder cannot be ZUS exempt - instead, such shareholder must pay social insurances based on the market value of provided services. Read more HERE.

    The most important part of that case is: "Shareholder's duties are tasks of a service nature. (...) Shareholder in practice provides services to the company that are characteristic for civil law obligations."

    To put it simple: if your work is of service nature, it will be considered as a service and taxed as such, no matter how creative you and your partner get!

Working in Glovo, Uber, Bolt, Wolt, Free Now and any of these points concern you? Thanks to DAC7, tax office will notice!

Download Appjobs Work app

Don't risk it - work with Appjobs Work on Uber, Bolt, Glovo, Wolt, Free Now and enjoy peace of mind!
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What risks and consequences can DAC7 have for you?

While partners may avoid consequences by setting up new companies one after another to slow down tax authorities, or shut down entirely, drivers and couriers as individual people are much easier to track and punish.
Tax offices can investigate up to 10 years back, and thanks to DAC7, they will get millions of data points directly from gig platforms.
If found guilty, you may be forced to pay back the avoided taxes, along with interest and potential penalties, and even criminal charges in extreme situations. That may also lead to denied visas or deportation for foreigners, affecting the future ability to live in Europe.
How can Appjobs Work help you overcome DAC7 dangers?
By becoming your partner of choice! 🙂
What is happening now is the reason why we were not offering bike rental contracts with inflated fees or cost reimbursements in a specific way to lower ZUS payments - we spoke with a lot of lawyers and identified these areas as tax evasion long ago.
Safety of our partners was always our #1 priority and we’re confident to say that our offer is absolutely legal and will never be considered tax evasion.
We’re happy to answer your questions at [email protected].