Do You Need a VAT Number to Sell on eBay?

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Do I Need a VAT Number to Sell on eBay?

With the introduction of the Dac7 regulation, many eBay users have begun to wonder whether they need a VAT number to sell on the platform.
The answer primarily depends on how sales are conducted.
You can sell on eBay without a VAT number, avoiding sanctions and issues, provided that your sales are not professional in nature.

The crux of the matter lies in defining what constitutes a professional sale.
There are no specific sales volumes considered “legal” or otherwise that necessitate obtaining a VAT number.
Forget about the previously mentioned threshold of €5,000, which relates to contributions for occasional commercial activities rather than determining the necessity for a VAT number.

Can I Sell on eBay Without a VAT Number?

Absolutely, as long as your sales involve personal items like books, clothes, or antiques collected from home.
These sales qualify as occasional transactions; for instance, you’ll sell one unique book or a pair of jeans of a specific size and color.

When you create a seller account on eBay for the first time, you are prompted to choose between being a “professional seller” or a “non-professional seller.” This classification aligns with tax regulations governing commercial activities, which distinguishes between occasional selling and professional selling.

When is a VAT Number Required on eBay?

A VAT number is necessary when engaging in sales that are:

• Continuous
• Stable
• Professional

Occasional sales, such as clearing out old items from storage, do not qualify as professional or continuous activities.
Once you sell the items cluttering your space, your sales activity ceases.

In contrast, if you sell items purchased explicitly for resale, this clearly indicates a professional operation.
This organization method signifies a business activity.

What Defines a Professional Activity?

According to the Italian Ministry of Finance Circular 7/1496 of April 30, 1977, a habitual activity must show a consistent and regular engagement in the sales process, indicating a professional character.

If you create new listings daily or operate an eBay store and buy items solely for resale, you are indeed acting as a merchant, and you must obtain a VAT number regardless of sales volume.

eBay’s Obligation to Report Seller Data

Before starting to sell without a VAT number, it’s important to note that the Dac7 directive requires platforms like eBay to report seller data to tax authorities within the EU if:

• Total sales exceed €2,000 in a calendar year
• You complete at least 30 sales transactions (excluding canceled ones)

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