Safe Selling Tips for Vinted and Wallapop: Avoiding Fines
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How to Sell on Vinted and Wallapop Without Risking Fines
Many people mistakenly think that selling second-hand items allows them to circumvent tax obligations.
However, this activity still falls under commerce.
It’s crucial to understand that the line distinguishing those who can sell without a VAT number (and associated tax obligations) from those who cannot is incredibly thin.
Failure to comply with the relevant regulations can lead to hefty fines due to tax evasion when selling on platforms like Wallapop and Vinted, as well as eBay, Amazon, Etsy, and Vestiaire Collective.
Let’s explore when tax obligations apply to the sale of used items through these platforms or personal websites.
When is Selling on Vinted and Wallapop Tax-Free?
Even if you sell second-hand items on intermediary platforms, you are still responsible for fulfilling tax obligations.
Nonetheless, if your selling activities are non-habitual, you can sell without opening a VAT number or paying taxes on the profits.
Many believe that tax obligations hinge on revenue or the number of items sold, but the key factor is whether the activity is habitual.
For instance, if you sell just a pair of jeans or a couple of books, you likely won’t need a VAT number, as long as your selling remains non-habitual.
However, in certain situations, even a few sales may necessitate opening a VAT number, even when using a free platform for intermediation.
When Must You Open a VAT Number?
As previously mentioned, occasional sales do not require a VAT number, allowing you to avoid tax obligations.
The determining factor is habit and regularity.
If your selling becomes systematic, you need to open a VAT number, issue receipts to buyers, and pay taxes, as selling used goods is regarded as a professional activity.
Many assume that an annual income of €5,000 is a key threshold, yet that’s not the case.
A VAT number must be obtained when the selling activity is professional, regardless of earnings level.
Being a professional seller indicates that you invest time and engage in organized, regular commerce.
Interestingly, merely promoting your selling activities, such as posting on TikTok to direct followers to your Vinted profile, qualifies as organized selling, thus classifying you as a professional seller.
If your activity is infrequent, you may not need a VAT number, even if you exceed the €5,000 revenue limit; however, you must contribute to the separate INPS fund.
How to Sell on Vinted and Wallapop Without Facing Fines
To sell on platforms like Vinted, Wallapop, or eBay without incurring fines, monitor the frequency of your sales and how you promote your profiles.
If you sell occasionally, there’s little to worry about regarding fines.
However, if your sales are systematic and consume significant time, failing to open a VAT number and pay taxes could result in penalties from the tax authorities.
How does the tax office track your sales? For intermediary platforms like Vinted and Wallapop, there’s an obligation to report sellers who exceed 30 transactions or earn over €2,000 annually directly to the tax authorities.
Thus, the tax office is well-informed about your annual sales and profits, using data from these platforms to combat tax evasion prevalent in online sales.
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