GDPR
DAC7
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Creator payouts in Europe? Compliance is not optional.
DAC7, labor laws, and tax withholding apply to every creator you pay. Grade handles all of it as your Merchant of Record.Book a Demo3,200+Creators paid
190+Countries
NoMonthly fees
DAC7: Every payment is reportable
DAC7 is an EU directive that requires you to report every payment you make to creators. It took effect in January 2023. If you pay creators in Europe, this applies to you.For each creator, you must report their full name, address, tax ID, bank details, total payments per quarter, and number of transactions. Reports go to one EU member state, which shares the data across all relevant countries.
Zero threshold for services
Unlike goods (which have a 30-transaction threshold), services have no minimum. Every single creator payment is reportable from the first euro.How Grade handles this
- Automatic DAC7 reporting for every creator payout
- We collect and verify tax IDs, bank details, and addresses
- Reports filed on your behalf. You never touch the paperwork
Misclassification can shut you down
When you pay someone who doesn't have a registered business, EU regulators can reclassify that person as your employee, retroactively. You'd owe back taxes, social security, and potentially face criminal penalties.
GermanyCriminal penalties up to 5 years imprisonment for false self-employment. Retroactive social security for up to 4 years.
FranceFines up to EUR 225,000 for concealed employment. Criminal offense with potential business closure.
SpainGlovo was fined EUR 136M for misclassifying workers. Fines of EUR 4,000–13,000 per worker.
NetherlandsEnforcement moratorium lifted January 2025. Both client and freelancer jointly liable for back taxes.
EU Platform Workers Directive: Dec 2026
Starting December 2026, companies must prove that creators are NOT employees. If you can't prove it, they're automatically treated as employees. The burden of proof shifts to you.How Grade handles this
- As Merchant of Record, Grade is the legal counterparty to every creator
- The employment relationship is between Grade and the creator, not you and the creator
- This shields your company from misclassification risk across all EU countries
Identity checks and tax rules vary by country
Before you can pay a creator in another country, you need to verify their identity, check sanctions lists, and follow that country's tax rules. These rules change frequently and differ everywhere.
How Grade handles this
- Automated identity verification for every creator
- Sanctions screening and ongoing transaction monitoring
- Tax form collection and withholding where required
- We stay up to date with regulation changes. You don't have to
How Grade keeps you compliant
Grade is your Merchant of Record. Instead of paying creators directly and taking on compliance risk, you pay Grade. We pay every creator on your behalf.
1.
You pay Grade one invoiceYour finance team gets a single invoice for all creator payouts. Clean books, simple accounting.
2.
Grade handles complianceKYC, DAC7 reporting, tax withholding, and employment classification. All handled automatically.
3.
Every creator gets paid190+ countries. Local bank transfers, Wise, PayPal, and more. Creators pick their preferred method.