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There are many doubts related to how tax certain incomeas well as the money that we can receive through ‘Bizum’ or bank transfers for pending payments, debts from friends or family or for an item that we have put up for sale over the Internet. Platforms like Vinted, Wallapop and Milanuncios They are obliged to share, as of January 1, 2023, certain information related to sellers with a profile and regular activity in them, as stipulated by the European DAC7 directive.
If we get lost with the figures, sometimes we get much more lost with the laws, but to avoid getting lost in the tax obligations that we have if we sell items online, we are going to explain the advice and warnings that these applications have shared with their users so that they know if it applies to them, depending on the total amounts they have received from their buyers. Besides, Ariadna Rodó, lawyer at the ‘DiG’ law firmin Barcelona, explained in detail two months ago how can we know if we have to declare that money in second-hand purchases.
This is how the European DAC7 directive works for online sales
In recent years, the European Union has carried out a series of initiatives and modifications to its tax transparency directive. In the case of DAC7 (Directive on Administrative Cooperation in the tax field) is a legal provision “that obliges digital platforms to share certain information about their sellers with the tax authorities. This regulation applies to all EU countries”, as the Wallapop platform explains to its users in their help center, where they also clarify that the objective is to “increase transparency and improve the exchange of information between platforms like ours and tax authorities” within the framework of the union.
This Monday, November 25, people who make sales through Vinted have also received an e-mail with the necessary information to take current legislation into consideration, although it clarifies regarding obligations. The buying and selling company clarifies that, although it applies to the people who have made 30 or more sales in the fiscal year 2023, it does not have to imply any payment, since they clarify that “generally the sale of personal items on Vinted is not subject to taxes”, although they invite you to review the sales made and also add a form which they have partially filled out, since that is a recent requirement that must be met.
If they do not do so, they continue to inform those who have a profile and use their services, “Unfortunately, you will not be able to sell on Vinted”although it clarifies that they will be able to do it normally again once they complete that request. These companies are obliged “to collect, verify and communicate information to authorities tax on certain sellers who use our platform”, summarizes the first of them in its information sections, where we can also read that they send said information before January 31 of the following year, since “it must be collected and verified every calendar year “.
About declaring income from second-hand sales
The ‘DiG’ law firm shared two months ago. through its ‘Youtube’ channel, an explanatory video to provide practical information on the tax obligations of those who sell second-hand items through websites or applications, taking into account the tax regulations in force. “According to Spanish legislation, Occasional sales are not subject to Value Added Taxbecause the seller does not have the status of businessman and, therefore, a business activity is not carried out”, begins the explanation, one of the lawyers of the firm, Ariadna Godó, who clarifies that in this “transaction between individuals”, The person who buys has to pay the Property Transfer Tax (ITP).
On the other hand, “the profits obtained from these sales may be subject to Personal Income Tax“, since “if the sale generates a capital gain, this must be declared.” The lawyer clarifies that the key is in the “capital gain”, which we can calculate with the difference between what an item cost us and the benefit we have obtained when we have sold it through one of these platforms, something that Rodó explains through a very simple example: “Let’s imagine that you sell an item that you bought for 100 euros for 150. The capital gain would be 50 euros and must be declared in the personal income tax for the year in which the sale was made.”
Another important note, he adds, is whether the sale has been made by a businessman or an individual, since if this type of transaction is carried out “on a regular basis and for profit, it is mandatory to register in the Census of Businessmen. Professionals and Retainers and declare these sales.” In addition to the limit imposed on making 30 sales or more that Vinted highlighted for the transfer of information to the authorities, there is also a economic barrier, set at 2,000 eurosso if we reach certain figures, it is important to clarify doubts with advisors who can shed light on us to continue operating legally and without scares.
* **What is the DAC7 directive and how does it affect online sellers?**
## Interview: Selling Online – Navigating the New Tax Landscape
**Guests:**
* **Ariadna Rodó**, Lawyer at the ‘DiG’ law firm
* **Lola Sánchez**, Representative from Wallapop
**Moderator:** Welcome to World-Today-News. Today we’re diving into the changing world of online selling and the new tax regulations impacting platforms like Vinted, Wallapop, and Milanuncios. We’re joined by Ariadna Rodó, a legal expert at the ’DiG’ law firm, and Lola Sánchez, representing Wallapop. Thank you both for joining us.
**Section 1: Understanding the DAC7 Directive**
**Moderator:** Ariadna, let’s start with the basics. Can you explain what the DAC7 directive is and why it’s making headlines for platforms like Vinted and Wallapop?
**Ariadna:**
*(Explains DAC7, its objective of tax transparency, and its impact on online platforms)*
**Moderator:** Lola, how is Wallapop preparing for these new requirements? What specific steps are you taking to comply with DAC7?
**Lola:**
*(Details Wallapop’s response to DAC7, highlighting its communication efforts with sellers and any changes to platform functionality)*
**Section 2: When Do Sales Trigger Tax Obligations?**
**Moderator:** Ariadna, the article mentions that “occasional sales” are generally not subject to VAT. Can you elaborate on what constitutes an “occasional sale” and how it differs from a business activity in the eyes of the tax authorities?
**Ariadna:**
*(Provides a detailed explanation of the distinction between occasional sales and business activities, using real-life examples to illustrate the points)*
**Moderator:** Lola, you mentioned in your platform’s communication that Vinted is requiring sellers with 30 or more sales in a year to fill out a form. What’s the reasoning behind this specific threshold, and does Wallapop have similar requirements?
**Lola:**
*(Explains Wallapop’s stance on seller thresholds and potential triggers for reporting obligations)*
**Section 3: Understanding Capital Gains and Reporting Requirements**
**Moderator:** Ariadna, can you walk us through the concept of capital gains in the context of selling second-hand items? When does a seller need to declare these gains, and how is it calculated?
**Ariadna:**
*(Provides a step-by-step explanation of calculating capital gains, emphasizes the importance of accurate record-keeping, and clarifies reporting deadlines)*
**Moderator:** Let’s imagine a scenario: Someone regularly sells handcrafted goods through Wallapop and consistently earns a profit. What are the potential tax implications for this individual, and what steps should they take to ensure compliance?
**Lola:**
*(Discusses Wallapop’s guidance for regular sellers, emphasizing the importance of seeking professional tax advice)*
**Section 4: Looking Ahead: Navigating the Future of Online Sales**
**Moderator:** Ariadna, what advice would you offer to individuals who are unsure about their tax obligations when selling items online? What resources are available to help them understand the regulations?
**Ariadna:**
*(Provides practical tips for navigating online selling regulations, suggesting relevant resources like the tax agency’s website, online tax calculators, and the benefits of consulting with a tax professional)*
**Moderator:** Lola, how do you see these new regulations shaping the future of online marketplaces? Will it deter casual sellers, or will it ultimately create a fairer and more transparent ecosystem?
**Lola:**
*(Shares Wallapop’s perspective on the long-term impact of DAC7 and the platforms’ role in guiding sellers through the evolving landscape)*
**Moderator:** Thank you both for shedding light on this complex topic. This conversation highlights the importance of staying informed about evolving tax laws and seeking expert advice when needed. We encourage our viewers to take note of the information shared today and consult with relevant authorities for personalized guidance.
