Should income from sales of personal items on the Internet be reported?

SMS Conversation

A. Are you coming with us for next weekend in Barcelona?

B. Yes, I can afford it, I sold lots of stuff on the internet and during the garage sale of the neighborhood. It's all good, right in your pocket!

A. You're going a little fast. Set aside the taxes to be paid on that income. You know you're gonna have to declare them?

Received Idea

“I have to declare income from selling things and goods I no longer use on the internet to tax.”

FALSE (tablet)

SP Response

It's a common misconception!

Generally, you don't have to pay tax on the income you get from one-time sales of items you no longer want.

The rules vary, however, depending on the type of goods you are selling.

If you sell a used car, furniture or appliances that you want to get rid of, you never have to pay taxes. For all other goods, you may pay tax if you sell for more than €5,000. You will have to pay it if you get a higher price than you paid when you bought it. It's a capital gains tax.

These rules apply equally to sales on the Internet, on an application, or face to face, for example during a garage sale.

Beware, if you sell items that you make, you are taxable on that income. So you have to declare them. Finally, know that if you buy goods to resell, you are also taxable on the resale income.

Key Points

- Tax-exempt sale without limit of amount if you sell your car, furniture or appliances.

- For sales above 5,000 € excluding car, furniture or appliances, tax payable if you make a profit.

- Taxable income if you manufacture items or buy items specifically for sale.