Do You Need a VAT Number to Sell on Vinted?

Do I Need a VAT Number to Sell on Vinted?

In recent times, particularly after the introduction of Regulation Dac7, the question of whether to open a VAT number for selling second-hand items has emerged frequently.
It’s important to clarify from the start that the tax treatment and obligation to open a VAT number depend on the nature of the sales: are they professional or occasional?

What defines whether a type of commerce is occasional is not the seller’s perception, but rather the way in which it is conducted.
In this article, we will explore when it becomes necessary to hold a VAT number for selling on Vinted.

Selling on Vinted: When is it Occasional Commerce?

It is not necessary to have a VAT number to sell on Vinted as long as the sales made on the platform are considered occasional, regardless of what Regulation Dac7 mandates.

This new regulation requires various sales platforms to request sellers to fill out a form with their information to transmit to tax authorities in cases where:

• More than 30 sales are made in a year.
• Sales generate earnings exceeding €2,000.

However, these regulatory limits do not necessarily compel one to open a VAT number.
For instance, if a seller decides to sell a rare designer bag on Vinted and earns €2,500, they must complete the required form according to Regulation Dac7.
Yet, they may not be obliged to open a VAT number if it is a one-off sale, making it occasional and hence exempt from tax obligations.

Generally, you may sell on Vinted without opening a VAT number if your commercial activity is sporadic and occasional, as in the case of someone selling items of clothing that they no longer use.

When is it Mandatory to Have a VAT Number for Selling on Vinted?

A clear definition of professional commerce comes from the Italian Ministry of Economy and Finance, which states that “professionalism and regularity exist whenever the individual repeatedly and systematically conducts a multitude of economic acts aimed at achieving a purpose.”

Sellers who use Vinted for regular and continuous transactions are operating professionally and generating business income; therefore, they are required to open a VAT number, regardless of their earnings amount.

It is crucial to understand how to navigate this and what mandatory obligations arise before your commercial activity on Vinted becomes professional.

If the selling activity is carried out systematically and regularly, it qualifies as professional activity.
Be aware, however: simply advertising your sales activities on platforms like TikTok, Facebook, or Instagram could classify your endeavor as professional.

Thus, the professionalism of sales on Vinted does not rely on income but rather on how the activity is performed.
If you consistently participate in selling items on the platform, even if they are used, with recurrent transactions throughout the year, your business is considered systematic, regular, and ongoing.
To avoid fines from the Tax Agency, it’s essential to open a VAT number and fulfill accounting and tax obligations.