If you regularly sell on platforms like Allegro, Vinted, or OLX, it's worth keeping in mind that the approach to monitoring online sales has changed in 2024. Tax authorities have received a new tool – DAC7 reporting – that allows for more precise monitoring of online commercial activity. This means that even private sellers can fall into tax traps if they're not careful.
What does this mean for you?
The rules are quite simple, but important to know:
- Occasional sales – no tax
If you sell used items, such as old clothes, appliances, or other items, for less than you bought them for, you don't have to pay tax. Such a sale is considered a bargain sale and is not subject to tax. In this case, you don't have to worry about any tax formalities.
- Profitable Sales – Business Activity
However, if you sell frequently and profitably, your business may be considered a business. In this case:
- you need to register a business,
- issue invoices, bills or receipts,
- and settle income tax and possibly VAT.
What changed in 2024?
Changes came into effect in 2024, affecting platforms such as Vinted, OLX, Allegro, and others. These platforms are now required to report to tax authorities users who:
- complete at least 30 sales transactions per year, or
- achieve over 2000 euros in revenue.
If you reach these limits, your data will be sent to the tax office, which will verify your compliance. Tax authorities will have access to information about your sales, which could lead to more thorough tax audits.
Podsumowując:
- Do you sell infrequently and privately? – No problem, you don't have to worry about taxes.
- Do you sell regularly and profitably? – It's best to check whether you have any additional tax obligations. It may turn out that your trade is treated as a business activity, in which case you must meet all the formal requirements.
Not sure if your sales on Allegro, Vinted, or OLX constitute a business activity? Or perhaps you want to learn how to take advantage of the opportunity to sell as an unregistered business? Contact us, and we'll help you understand what tax obligations may apply to you and how to avoid problems with the tax office.
