Abillio Becomes DAC7-compliant Payments Provider for Online Internship Marketplace Vaqat

  • Payments
  • 16.04.2024 02:35 pm

Vaqat has chosen Abillio's API-based payment infrastructure to streamline student onboarding, tax compliance, and payouts, combined with DAC7 reporting.

Launched in 2022, Vaqat is a marketplace where companies can outsource short intern-like tasks to students from 70 countries and future employers can use such projects as a talent assessment tool.

“One of the biggest issues for us was to manage invoices, tax compliance, and multi-currency payments to students globally, and with the new DAC7 regulation requiring data collection and income reporting, the issue has grown bigger,” says Daniel Robaczewski, the founder of Vaqat.

The introduction of the EU DAC7 directive in 2023, which requires all digital work platforms and marketplaces to collect personal data on freelancers and report freelancer income to local EU tax authorities, has created a need for a new solution to the problem that did not exist before - compliant payments to freelancers and gig workers combined with outsourced DAC7 report filing, which is the type of service Abillio is looking to provide.

Abillio is an invoicing and payments platform that allows freelancers and gig workers to send VAT invoices and get paid for their services without registering their own companies and without dealing with admin work. Business clients, on the other hand, can distribute payouts to their vendors - freelancers while staying compliant with accounting requirements and DAC7 regulations. Last year Abillio introduced API (application programming interface) that allows seamless payment infrastructure integration into gig work platforms and marketplaces, thus providing compliant payouts to individuals globally and outsourced DAC7 reporting.

“For marketplaces and gig platforms, having to dedicate internal resources to manage payments to individual sellers globally, while assuring DAC7 compliance, is a distraction from other core business priorities. Additionally, the risk of non-compliance may lead to reputational damage and heavy fines, and we believe we can be a good help here,” says Martins Vilums, founder of Abillio.

Abillio helps online platforms affected by DAC7 by seamlessly collecting the user and transactional data from the platform, converting sellers into a legal entity and providing TAX ID & VAT ID, automatically invoicing on behalf of the freelancers/sellers, distributing payments to freelancers/sellers and taking over the DAC7 reporting to EU27 tax authorities.

US-based online marketplace Vaqat is set to facilitate ad-hoc, remote micro-internships to support teams, enhance graduate recruitment, and help students find careers they’ll love. Today the platform has 41 thousand students looking for internships. Companies like Bain & Company, Kearney, OC&C, Altman Solon use this platform to attract talent from top schools, such as London Business School, ESADE, Bocconi to perform various project-based tasks like market assessment & benchmarking, data entry, marketing support, data analytics. 

Launched in 2021, Abillio's web platform was set to help freelancers deal with administrative tasks by providing them with company-as-a-service, legal assistance, VAT invoicing, and global payments. Today, the Abillio platform also caters to businesses by offering compliant payments to freelance contractors, platform sellers, and creators, API-based DAC7 data collection and reporting for online work platforms, freelancer marketplaces, streaming services, gig work & creator platforms. Last year Abillio facilitated freelancer payment distribution in a total value of over 5 M EUR, doubling the previous year. The platform has attracted more than 10,000 freelancers from 50 countries and has onboarded 24 business clients.

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