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Date Published: 02/10/2024

Spain cracks down on second-hand online sellers: What you need to know

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Sellers in Spain will be fined if they make a profit and fail to declare it to the Treasury

Spain cracks down on second-hand online sellers: What you need to know

The world of online second-hand shopping has exploded in recent years, with platforms like Vinted, Wallapop and Milanuncios becoming household names in Spain. But with the rise of this digital marketplace comes a new reality: the need to report and pay taxes on your online sales.

As of this year, the Spanish government has announced that it will be fining sellers who fail to declare their profits from second-hand sales. But what does this mean for you, the average online seller? Do you need to report your sales, and if so, how do you go about it?

According to Paula Urcera, a tax expert and spokesperson for TaxDown, “the law is clear that sales derived from consumption, as they are called, must be declared when they result in a profit.”

This applies to all products, from clothing and household appliances to video games and cars. However, not everyone who sells online will be required to declare their income.

Who needs to file?

The Treasury in Spain requires individuals who sell more than 30 items per year for a value of more than 2,000 euros to pay taxes on their sales. This affects only a small percentage of users, with Wallapop estimating that only 1% of its users reach this limit.

And there’s no hiding profits from the tax authorities, since a European Union regulation, specifically 2021/514 or DAC7, requires online platforms to share tax information of sellers with the authorities. In Spain, this directive has been transposed into law by Royal Decree.

But essentially, if you sell items at a loss i.e. for less than you bought them for in the first place, this does not have to be included on your income statement.

While the majority of small online sellers won't be affected by this regulation, it's essential to understand the rules. If you're unsure about your tax obligations, consult a tax expert or the Treasury's website for guidance.

In other news: Olive oil and basic groceries in Spain shoot up in price from October 1

Image: Freepik

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