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Amazon KDP and DAC 7

hasby2023

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Jul 22, 2023
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Hi all, does anybody know if KDP will implement the DAC 7 directive for royalties paid to european publishers? While FBA sellers have already received a dac 7 tax interview to fill out, we KDP haven't received it yet. My take is that for some reasons the money paid out from kdp is out of scope the dac 7 directive. I contacted the support and nobody knows anything about the dac7 compliance.
What are your thoughts on that ?
 
It is possible that KDP will implement the DAC 7 directive for royalties paid to European publishers. The directive was adopted in July 2021 and requires companies to withhold taxes on certain payments made to non-resident publishers. However, the directive does not come into force until January 1, 2024, so KDP may not be required to implement it until then.
 
Would an LLC "trick" the reporting system even if we are resident in a EU Country? I.e. flagged as a US Entity therefore exempt from reporting?
I understand that as a non resident alien i'll be asked to fill the W8BEN form but that doesn't imply that the reporting will automatically be done, right? An LLC has a lot of deductible expenses and is quite easy to pay low taxes by declaring even dummies expenses, but if the reporting is automatic, it would be hard to do this trick